The Emerging Cryptocurrency Sector: An Indian Perspective

Abstract

The concept of cryptocurrency is a novel idea in virtual or digital currency that has garnered significant attention from risk-takers, investors, the general public, and academic practitioners in the past several years. Cryptocurrency is a virtual currency that can be used as a medium of trade across a computer network without the need for support or maintenance by a centralized entity like the government or the Reserve Bank of India (RBI). Generally, cryptocurrencies employ decentralized control as opposed to digital currencies issued by Central Banks Digital Currency (CBDC). Similar to gold, cryptocurrencies have emerged as a new investment option in India. The decentralized network, decreased reliance on cash, lack of middlemen, and unstable pricing aspects of cryptocurrencies prevent them from reaching their full potential. Just behind Vietnam, the bitcoin economy of India is ranked second globally in terms of acceptance The cryptocurrency market in India is poised to develop by leaps and bounds by 2030, earning $241 million and potentially employing 877,000 people. With more than 230 firms popping up and about $270 million invested in Indian blockchain and cryptocurrency start-ups until 2021, the crypto-tech ecosystem is growing quickly. As of 2021, 1.8% of adult Indians had made cryptocurrency investments—a 2.2 times increase in just one year. The goal of this research is to comprehend cryptocurrencies and their overall effects on the Indian economy. Cryptocurrency's future is unclear. The paper also examines the state of cryptocurrencies in India as well as its potential going forward.