What is cryptocurrency?

You might have heard your parents and adults discuss cryptocurrency and investments in it. You may have come across terms such as Bitcoin, Ethereum, and Litecoin.

Cryptocurrency is a type of virtual or digital money. Unlike currency notes that can be carried around, cryptocurrency is a medium of exchange created and stored electronically. It is crucial to note that it is not legal tender in India. (El Salvador is the only country which has made the cryptocurrency Bitcoin legal tender).

How does it work?

The technology behind cryptocurrency allows users to send electronic money to each other without going through a third party like a bank.

Cryptocurrency, which exists only in the digital world, relies on encryption to make transactions secure. Every single transaction is recorded in a public digital ledger called blockchain. The ledger is maintained by a network of miners. who verify the transaction.

Anyone who conducts a cryptocurrency transaction is, connected with the system that by default makes them a record-keeper. That means whenever a transaction is being carried out, all users get notified of the deal in their account. That is, every user has a record of the history of all transactions and also of the balance in every account.

Who invented cryptocurrency?

No one knows. The cryptocurrency was invented in 2008 by an unknown person or group that goes by the name Satoshi Nakamoto.

What is the value of cryptocurrency?

The value of each cryptocurrency is not fixed. Their worth is decided by what people are willing to pay for them. Their value is determined by various factors such as demand, supply and other competing cryptocurrencies.

What are some of the cryptocurrencies?

Bitcoin was the first decentralised cryptocurrency introduced as open-source software in 2009. It continues to be popular in the world of cryptocurrencies. However, there are several cryptocurrencies such as Litecoin, Ethereum, Ripple and Primecoin in use today, with some estimates puting the number at 1300.

What is India's stand on cryptocurrency?

As seen earlier, cryptocurrency is not legal tender in India. This means you cannot buy or sell anything using cryptocurrency.

However, one can invest, trade or mine in cryptocurrency, as there are no laws to prohibit it. In recent times, investment in cryptocurrency has been growing rapidly among Indians due to steady innovations in the digital landscape. It has generated quick wealth for many investors despite the high risks associated with it.

This has made our government to sit up and take notice. In general, governments around the world are eyeing the currency's popularity warily because it has the potential to upend the existing financial system and undermine governments role in it. Cryptocurrency also faces criticism for its potential to be used in illegal activities.

Recently, a meeting was held between India's Prime Minister Narendra Modi and representatives from the Finance Ministry. the Home Ministry and the Reserve Bank of India (RBI). The RBI expressed its long-standing concern over using cryptocurrency and investing in it. So the Central Government is likely to bring in a law to regulate cryptocurrency usage. It is likely to introduce a comprehensive Bill on cryptocurrency in the upcoming Winter Session of Parliament.

What about other countries?

The legal status of cryptocurrency varies substantially from country to country and is still undefined or changing in many of them. Many countries such as Germany allow citizens to trade, but the proceeds from the trade are taxable. In Asian countries such as Bangladesh, Nepal, and Kyrgyzstan, using or trading in virtual currencies is illegal. China recently announced that all 'cryptocurrency-related business activities are "illegal financial activities" and strictly prohibited.

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What is the connection of cotton and currency?

Ever had a chance to touch and feel a fresh banknote that just come into circulation? What was it like? Crisp right? Did you know what our currency notes are made of Pure cotton Surprising isn’t it? Let’s find out more about the notes and where they are printed.

The Reserve Bank of India (RBI), headquartered in Mumbai, has the sole right to print and manage currency in India.

 Banknotes in circulation are often affected by heat, moisture, and other such factors. Considering that they are handled by millions of hands, a regular paper is not used for printing them. Though the banknote has the feel of paper, it is not the regular paper The paper currently being used for printing of banknotes in India is made of 100% cotton, according to the RBI site.

The cotton-based paper is coated with a special lacquer to repel dirt and moisture. Besides, banknotes are embedded with security features such as watermark, security thread, latent image of denomination numeral denomination numeral in colour shifting ink bleed lines, and see-through register. These are there mainly to deter counterfeiting.

The special paper required for printing of currency notes by the security presses in the country is manufactured at Hoshangabad in Madhya Pradesh, and Mysuru in Kamataka. While the Hoshangabad mill is under government control, the Mysuru mill is run by the RBI.

According to the site, "Bank notes are printed at four currency presses, two of which are owned by the Indian Government through its Corporation. Security Printing and Minting Corporation of India Ltd. and two are owned by the RBL through its subsidiary. Bharatiya Reserve Bank Note Mudran Private Ltd." The currency presses of SPMCIL are at Nasik and Dewas and those of BRBNMPL are at Mysuru and Salboni.

Quick facts

  • Paper currency came into existence in India in 1861.
  • The one rupee note is the only currency note which is not signed by the Governor of RBI, but by the Finance Secretary to the Government of India.
  • Coins are minted in four mints owned by SPMCIL. The mints are located at Mumbai, Hyderabad, Kolkata, and NOIDA. The coins are issued for circulation only through the RBI.

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Only one country in the world calls its currency yen. Which country is it?



The yen is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the Euro. It is also widely used as a third reserve currency after the U.S. dollar and the Euro.



The spelling and pronunciation "yen" is standard in English because when Japan was first encountered by Europeans around the 16th century, Japanese /e/ (?) and /we/ (?) both had been pronounced and Portuguese missionaries had spelled them "ye". By the middle of the 18th century, /e/ and /we/ came to be pronounced [e] as in modern Japanese, although some regions retain the [je] pronunciation. Walter Henry Medhurst, who had neither been to Japan nor met any Japanese people, having consulted mainly a Japanese-Dutch dictionary, spelled some "e"s as "ye" in his An English and Japanese, and Japanese and English Vocabulary (1830). In the early Meiji era, James Curtis Hepburn, following Medhurst, spelled all "e"s as "ye" in his A Japanese and English dictionary (1867); in Japanese, e and i are slightly palatalized, somewhat as in Russian. That was the first full-scale Japanese-English/English-Japanese dictionary, which had a strong influence on Westerners in Japan and probably prompted the spelling "yen". Hepburn revised most "ye"s to "e" in the 3rd edition (1886) to mirror the contemporary pronunciation, except "yen". This was probably already fixed and has remained so ever since.



 



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Both North Korea and South Korea have the same name for their currency. What is it?



The Korean won has been used in some form for thousands of years. During the occupation of Korea by Japan, which spanned from 1910 to 1945, the won was briefly replaced with a Japanese colonial currency called the Korean yen.1



After World War II, however, the division of North Korea and South Korea resulted in two separate currencies, each called the Korean won. Initially pegged to the USD at a rate of 15 won to 1 dollar, a number of devaluations occurred thereafter due largely to the effects of the Korean War on the nation's economy.



In 1950, the Bank of Korea began operations as South Korea's new central bank. It assumed the duties of the previous monetary authority, the Bank of Joseon, with exclusive authority to issue banknotes and coins for the country.? Today, the Bank of Korea issues banknotes in denominations ranging from 1,000 to 50,000 won. The notes feature early Yi, or Chos?n, dynasty figures, including writers Yi Hwang, featured on the 1,000-won note; Yi I, featured on the 5,000-won note; and King Sejong, who appears on the 10,000-won note.



In the 1980s, South Korea sought to expand the relevance of its currency to international trade by replacing its dollar peg with a basket of currencies. Further changes were made in the late 1990s, when the government responded to the Asian Financial Crisis by allowing the won to float freely on foreign exchange markets.



 



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Dirham is currency of which two countries?



Morocco is only one of the two countries to call its currency dirham. The UAE Dirham was established in 1971 as an official national currency and is used only in the United Arab Emirates. 1 Dirham is divided into 100 Fils.



The UAE Dirham is tied to the US Dollar with a fixed exchange rate. Therefore, 1 Dirham always equals to 0.2723 US Dollar.



The word "dirham" ultimately comes from drachma the Greek coin. The Greek-speaking Byzantine Empire controlled the Levant and traded with Arabia. It was this currency which was initially adopted as a Persian word (Middle Persian drahm or dram). The "dirham" was the coin of the Persians. The dirham was struck in many Mediterranean countries, including Al-Andalus (Islamic Spain) and the Byzantine Empire (miliaresion), and could be used as currency in Europe between the 10th and 12th centuries, notably in areas with Viking connections, such as Viking York.



In the late Ottoman Empire the standard dirham was 3.207 g; 400 dirhem equal one oka. The Ottoman dirham was based on the Sasanian drachm (in Middle Persian: drahm), which was itself based on the Roman dram/drachm.



In Egypt in 1895, it was equivalent to 47.661 troy grains (3.088 g).



 



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