Bitcoin is one of the latest news in India. This cryptocurrency basically means it “uses peer-to-peer technology to operate with no central authority or banks.” There are a lot of advantages of having Bitcoin in a country but there negative sides to it also.
Bitcoin is a good form of the economy. But the next question which arises would be if this Bitcoin is capable or if this Bitcoin should replace the currency of Central Banks? This small question actually puts a lot of people and those in authorities as well into a big confusion.
Why Bitcoin Cannot Win Over Central Bank?
Well, to look into the negative side of this question there are a lot of assumptions and reasons for it. First of all, there are interpretations that Bitcoin can in fact have the power to remove the Central Bank and then act as a monopoly of its own. Bitcoin actually should not replace Central Bank because this technology cannot easily replace the Bank and the actual part of it.
Sometimes the online process of doing transactions can take up time and for this the dependence of the Central Bank is important. It is because it helps in making the transactions faster and time efficient as well too. Then the most important aspect would be the security. A person cannot always depend on technology. Technology can never replace human beings.
The machine can make defects but the Banks are thorough with everything. So a chance of error is less. Cryptocurrency is known for its non-hackable method. But then again, a machine cannot always be trusted and there are chances that is can be hacked. Hence, leading to information leakages, transactions and monetary parts missing and so on.
Why Bitcoin Can Win and Replace Central Bank?
First and for most is that Bitcoin helps in detecting fraud money, that is, black money or illegal money. Central Bank cannot always check through and understand if a transaction or money is fraud and so on. Also the cost of setting a Bitcoin, that is, cryptocurrency, is very less as compared to Banks.
This cryptocurrency in fact also helps in reducing the problem of government having too much control. Through this procedure, the government or the authority would not have too much power or control. They can actually save from their hands. To achieve a point of decentralization, it is important to have Bitcoin. It will help in overcoming many problems and then return can have their own independence.
To wrap it up, Bitcoin can replace Central Bank if India, but it is not necessarily a wise idea as of now to replace the current Central Bank. If this step is done, then a lot of people would be unemployed because many have jobs at the Central Bank. Then many would find it difficult to operate, to work with it or as simple as coming in terms with this simple idea also. But then having Bitcoin to the economy is good, but not to a larger extend.