• Ashutosh Kolte
• Shweta Karad
• Divya Patil
• Taher Patel

The first cryptocurrency, Bitcoin was created in year 2009. In this paper, we have identified various threats to traditional banking system. We have conducted survey in India in to gauge attitude of people towards cryptocurrency. We found that younger generation people to a certain extent are aware of cryptocurrency, while older generation people lack awareness regarding cryptocurrencies. Today, world is experiencing many technological advances in payments system. Beginning from traditional banking to internet banking to mobile banking, we have machine to machine payments. Government of India is also taking efforts towards digitalization of India. Until last decade, Central banks were the sole authorities who had power to issue currency. On the contrary, cryptocurrency are created using blockchain mechanism which is released in fixed units. The encryption mechanism implemented makes it difficult for the intruder to manipulate the number of units. Each cryptocurrency is valued at a certain price. Based on the forecasting done, bids are made by the customers. But they are considered as private money. Cryptocurrencies being global, transactions can be carried out from any part of the world. Additionally, transaction charges are lesser for cryptocurrencies resulting in attracting more customers. High volatility and legality issues of cryptocurrencies that have arose now have resulted in backing off of customers and reduction in overall count. But resolving legality issues and enactment of an efficient regulatory firm, will help in the success of cryptocurrencies. Central Banks are conducting research on implementing their own Central Bank Digital Currencies as one of the ways to tackle the threats of private cryptocurrencies.

Central Banks; crypto currencies; conventional monetary system; perception; threat

"Cryptocurrency and its threat to Conventional Central Banks ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.685-691, June 2019, Available :http://www.jetir.org/papers/JETIR1907402.pdf

"Cryptocurrency and its threat to Conventional Central Banks ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp685-691, June 2019, Available at : http://www.jetir.org/papers/JETIR1907402.pdf