Consider the following statements regarding Cryptocurrencies.

1. It is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

2. Supreme Court had allowed banks and financial institutions to reinstate services related to cryptocurrencies by setting aside the RBI’s 2018 circular that had prohibited them based on the ground of “proportionality”.

Which of the statements given above is/are correct?