The federal government has announced that it will ban all private cryptocurrencies in the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. Thus the question of what constitutes private cryptocurrency across the country remains with everyone.
Private cryptocurrency is basically divided based on the difference between certain technology and its application. Basically cryptocurrency trading is divided into public or private cryptocurrencies based on how it is registered, how it is registered and how it is accessed.
Distributed ledger system
Cryptocurrencies are traded under Distributed ledgers and then stored in a centralized traditional ledger. This Distributed ledger will allow network members to make changes (permissioned) as well as permission-free.
Members of the crypto network
Thus it can be divided into public or private only with the permission of the Distributed ledger. That is, if the Distributed ledger can be accessed by anyone on that crypto network, it is public, otherwise it is private.
Although not all cryptocurrencies have absolute privacy due to the fact that they operate on blockchain technology, they provide privacy on some scale. In this sense
Public cryptocurrency can be tracked with the help of Distributed ledger with the help of blockchain technology, but private cryptocurrency cannot be tracked and owner privacy is protected.
Private cryptocurrency trace
Briefly NASDAQ explains that transactions can be made without the need to make transaction records with private cryptocurrency. This is creating many problems for each country.
Monero, Zcash, and Dash
In this case Bitcoin, Light Coin, Enemy etc. are public cryptocurrencies. Similarly, Monero, Zcash, and Dash are the leading cryptocurrencies, according to leading magazines.
But it is unclear whether the federal government has technically mentioned or otherwise interpreted private cryptocurrency in its bill.
Cryptocurrency investors have been alarmed by the sharp fall in the value of cryptocurrencies since the federal government’s announcement to ban such private cryptocurrencies. Investors continue to sell in fear and confusion.