International Journal of Engineering Trends and Applications (IJETA) – Volume 11 Issue 3 May - Jun 2024

RESEARCH ARTICLE OPEN ACCESS

The Future Scope of Cryptocurrency in India

Mr. Pradeep Kumar, Rahul Yadav, Rajesh Divakar
Computer Science and Engineering Global Institute of Technology Jaipur, Rajasthan

ABSTRACT
Technology is the biggest achievement in human race to development. Every century is characterized by rapid and drastic
evolution in technology in terms of communication and informatics science which has contributed in making the human life
smooth. The huge growth of online users has activated the concept of Virtual World and the Cryptocurrency (virtual currency) is
the one of the innovative steps. Cryptocurrency is the digital currency which is decentralized and used technologies such as
Blockchain and Cryptography for security, production and transaction purposes. The investment in cryptocurrency in India is
similar as the gold investments. Thought government has imposed strict regulations starting from 2022, but consideration of
cryptocurrency as a legal form of currency is still unclear in India.
Keywords-Cryptocurrency, Blockchain, Cryptography

I. INTRODUCTION
Today with the growing need and demand, the cryptocurrency II. OBJECTIVE OF STUDY
market has expanded drastically and has attracted numerous 1. To analyze the future aspect of cryptocurrency in
investors from all age groups around the world. Driving into the India.
history of cryptocurrency one gets its traces back 2. To understand the concept of cryptocurrency and it’s
functioning in regular trading.
3. To analyse the investment risk and benefits of
cryptocurrency.

III. METHODOLOGY
To conduct this research, we have collected data through
secondary sources, which includes articles, journals, books,
websites, and blogs.

IV. LITERATURE REVIEW

Cryptocurrency: An overview on its impact on Indian
Economy by Prof. Blesson James and Prof. Manjari
Fig.[4] Parashar; 2018: This paper talks about the rise of
cryptocurrency India, it’s legal overview by financial institute,
it’s pros and cons. This paper also talks about the aspects of
from 1983 when an American cryptographer David Chaum future growth of cryptocurrency with respect to the developing
proposed an idea of cryptographic electronic money called technologies now days.[6]
“Ecash”, which was later implemented by him, that allowed A study on cryptocurrency in India by Dr. Mubarak and
digitally transaction of cash that remained untraceable by the Hosmani Manjunath; 2021: As this paper is post covid so, this
issued bank. Later this conceive was implemented and upgraded paper talks about the rise of cryptocurrency in India during the
by different people and kept on being advance with the time Covid era where the world had switched to online mode and
until an unknown person or group named Satoshi Nakamoto also there is an extensive and fast rise and advancement in
voiced and framed the ideas around and presented the first ever technology, thus this paper talks about the high rise in
cryptocurrency, Bitcoin around 2009.[1] This was the first cryptocurrency users in India and the leading services for the
decentralized currency which was also known as peer-to-peer same. This paper gives an overview of Bitcoin, it’s history,
transaction. The idea behind the cryptocurrencies like Bitcoin legal issues and digital transactions in India.[8]
was to have an electric version of cash that would allow In the technical terms like cryptocurrency and bitcoins have
payments directly between the parties without any interference captured the eye of both tech - savvy and also the internet
of financial institute and do not rely on any Financial Institution expert. As per the article “A Short Introduction to World of
regulation. The technologies like Blockchain, Cryptography, Cryptocurrencies” by Fabiana Schar and Aleksander Berentsen,
Data Mining, etc. helps to produce, maintain and secure the bitcoin first came into existence with a white book that was
cryptocurrency technology.[2] published in 2008 (Berentsen & Schar, 2018). The creators of
the model intended to introduce the “cashless payment model”
that will allow electronic transactions rather than the physical
cash transactions. so as to assist the readers understand the

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 International Journal of Engineering Trends and Applications (IJETA) – Volume 11 Issue 3 May - Jun 2024
concept of bitcoin, the authors have highlighted the cash the uncertainty regarding the laws regarding cryptocurrency.
transactions further because the electronic payment system Recently in 2022 Budget, government has imposed 30% tax on
(Abdi, 2014).[11] the transfer of crypto assets. This makes the stake of
The major difference between the normal and Electronic cryptocurrency more unclear over India to be legal or not.
payment via bitcoin is that there's no involvement of physical
profit the later system. Bitcoin could be a virtual money unit
thay has no physical or tangible representation (Abramaowicz,
IX. FUTURE SCOPE
2016). so as to use this currency, it's necessary to ascertain in The future of cryptocurrency shows ray of developed
the least times, the whole number of a money units that exist technology and advanced management system with less chance
and therefore the number of a replacement money units that are of fraud. But at the same time the head financial institution of
created. Such approaches are highly crucial to create sure that India, RBI fears it the most as
the involved participants consent about the ownership rights
referring to a digital currency units. Bitcoin is that the
cryptocurrency that uses a “peer-to-peer” technological model
that permits different forms of functions like the issuance of
currency, the processing activities associated with the
transactions, and verification process.
This technology based virtual model has grown to an oversized
degree in exactly a decade and it's expected that this trend is
probably going to continue within the future in addition (Vigna
& Casey, 2016).
Fig.[6]
XIII. LEGAL IMPACT
Cryptocurrency has always been in the controversial box in crypto trading dominate most of the major terrorist and illegal
India. Since 2013, its state of legality isn’t well clear to the activities dealing all over world. Till date cryptocurrency does
customers. RBI has regularly checked and released warning not has any clear stand in our country India, still due to the
regarding the vital currencies in India.[12] advanced technical influence people trade in cryptocurrency and
invest in the same.
In our opinion, the future is still uncertain as cryptocurrency,
decentralized currency which is not regulated by any financial
institution is next to best option of trading but due to its
dangerous aspects of involvement with illegal activities and its
major flaws which can cause great scams and depressions in
Indian economy, there is a very less chance to be accepted by
our government.

X. CONCLUSION
In our opinion, cryptocurrency is the most uncertain currency in
India, as its stake is still very uncertain to be legal or not.
However, Cryptocurrency is a modern developed technology of
trading which is continuously getting popularity and is gaining
many investors. At the same time, it is also believed that all
illegal activities around the world are traded via cryptocurrency.
So use of cryptocurrency in India won’t be much appreciated.
Fig.[9] In our opinion, cryptocurrency is the most uncertain currency in
India, as its stake is still very uncertain to be legal or not.
However, Cryptocurrency is a modern developed technology of
Till the end of 2017, RBI clarified crypto as illegal currency. At
trading which is continuously getting popularity and is gaining
same time Supreme court was dealing with two PILs with where
many investors. At the same time, it is also believed that all
against and in favor for regulation of cryptocurrency in India.
illegal activities around the world are traded via cryptocurrency.
Beside all these ongoing disputes many on the Indian Banks
So, use of cryptocurrency in India won’t be much appreciated
continuously allowed the transactions in cryptocurrency and
by government or it would undergo through many restrictions as
there was no such ban. On April 6, 2018, a circular issued by
it is now.
RBI closed all dealing in cryptocurrency which resulted in great
Also, Indian government must take a way out to reform and
fall in crypto exchange. In Feb 2019, a bill was proposed which
uplift the cryptocurrency from its drawbacks and present a
recommended a blanket cover on the trading of cryptocurrency.
refined digital currency which should be much more secured
Then in March 2020, the Supreme Court of India lifted the curb
and free to regulate.
on cryptocurrency imposed by RBI which again allowed bank
to provide access to trade in cryptocurrency. Thus, we can see

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 International Journal of Engineering Trends and Applications (IJETA) – Volume 11 Issue 3 May - Jun 2024
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