The Friday attack on digital computers by the ransomware has created a spur into the whole world about WannaCry and the bitcoins. Bitcoin has remained in news since a year and we all have discussed about its advantages but this is the first time that bitcoins are in news due to their disadvantages.
Why Ransomware has made Bitcoin a Worry for Governments?
The hackers demanded the ransom in bitcoins instead of any other mediums like cash or in gold. They used bitcoin because one cannot track the address of the user under any circumstance. The user remains anonymous which gives an encouragement to criminals and online thieves. The transactions done through bitcoins are completely anonymous as you don’t need to link your personal details in it. You will be allotted an address which serves as your transaction ID and it is public but it will carry no details of the original user.
Therefore, the transactions made through bitcoins remain anonymous and that can certainly lead to huge frauds and the Friday’s cyber attack is the latest example. Few months back, the lobby of bitcoin supporters asked for government’s help to issue norms in favor of bitcoins but the latest attack may not go down well with the regulators.
Indian agencies related to bitcoins formed an agency known as Digital Asset and Blockchain Foundation of India (DABFI) to look into the aspects of bitcoins. Earlier, the RBI issued a statement cautioning the citizens to avoid bitcoin transactions and even if they do, the government and RBI won’t be responsible in case of crime related to it.
The Finance Ministry too asked its official to regulate norms for bitcoins as many issues related to it have popped up. The latest cyber attack is definitely a setback for stakeholders of bitcoins as this process invites frauds and money laundering. To make this process more transparent and in governments reach, the government may lay down norms related to it.
A total of $55,000 has been collected from the victims of cyber attack by the hackers and this figure is constantly going up. The failure to identify the users has certainly been the biggest challenge for the investigating agencies and it can certainly be fatal for the future of bitcoins not only in India but all around the world.