In recent years, several cyber experts have raised an alarm that terrorist groups might be using crypto currencies such as Bitcoin as a new funding stream to finance their operations.
News Nation is running a special show which unearths the possibilities of how bitcoins form part of terror financing.
In the wake of such reports, Bitcoins or such crypto-currencies have been deemed to be non legal tender and those indulging in such transactions are doing it at their own risk, Finance Minister Arun Jaitley made government's stand very clear over trading on these platforms.
On Jan 2, Jaitley emphasized that the Centre's consistent position was that such currencies were not legal tender.
"The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken," he said.
Bitcoin is a currency that helps to buy goods and services and also exchange money without involving credit card issuers or other third parties.
Working of bitcoin:
Bitcoin is a digital currency that is not connected to any bank or government. It allows users to spend money by being anonymous. Users who mine coins by lending computing power to verify other users’ transactions create these coins.
While bitcoins have been declared as illegal currency by most of the government's worldwide, the digital currency is a part of the financial trading markets over the last three decades.
Bitcoins came into the limelight when the best of cyber security systems in the world came under the attack of Ransomware, a type of malicious software from cryptovirology.