At its simplest, Bitcoin is either virtual currency or reference to the technology. You can make transactions by check, wiring, or cash. You can also use Bitcoin (or BTC), where you refer the purchaser to your signature, which is a long line of security codeencrypted with 16 distinct symbols. The purchaser decodes the code with his smartphone to get your cryptocurrency. Put another way; cryptocurrency is an exchange of digital information that allows you to buy or sell goods and services.The transaction gains its security and trust by running on a peer-to-peer computer network that is similar to Skype, or BitTorrent, a file-sharing system
A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transcations. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.
It is not feasible to implement bitcoin-like currency in Bangladesh.
Bangladesh Bank has banned the use of Bitcoin, a virtual cryptocurrency, in Bangladesh by issuing a circular on its website. The circular read that Bitcoin is not an authorised and legal currency in any other country in the world. “Transaction with this currency may cause a violation of the existing money laundering and terrorist financing regulations,” the circular further read. However, the notice does not carry any indication on how the regulation would be enforced. The circular also said Bitcoin is not authorised by any regulatory authority and thereby its use may cause financial loss of the citizens. “According to the information received from the internet and different news media, transactions have been taking place using different online-based exchange platforms including Bitcoin, Ethereum, Ripple and Litecoin.”
These virtual currencies are not authorised by any legal authority of any country and thereby no financial claims can be made against such currencies. Besides, these currencies do not conform to Foreign Exchange Regulation Act, 1947, Anti Terrorism Act 2009 and Money Laundering Prevention Act, 2012, the notice also read. So, the transaction of virtual currencies online with any unnamed or pseudo named peer may cause a violation of the above-mentioned acts and lead clients to face various financial and legal risks. Under the circumstances, the citizens have been asked to refrain from performing, assisting and advertising all kind of transactions through the virtual currencies like Bitcoin to avoid financial and legal damages. Meanwhile, a Facebook page titled “Bitcoin Exchange: Bitcoin Buy and Sell Bangladesh” has been opened in recent times. A local website named bitcoin.com claims that Bitcoin transaction can be performed in Bangladesh through Bkash, Rocket and other general banking accounts.