The Future Scope of Cryptocurrency in India

Mr. Pradeep Kumar Rahul Yadav Rajesh Divakar

Computer Science and Engineering Computer Science and Engineering Computer Science and Engineering
Global Institute of Technology Global Institute of Technology Global Institute of Technology
Jaipur, Rajasthan Jaipur, Rajasthan Jaipur, Rajasthan
[email protected] [email protected] [email protected]

ABSTRACT
Technology is the biggest achievement in human race from 1983 when an American cryptographer David
to development. Every century is characterized by Chaum proposed an idea of cryptographic electronic
rapid and drastic evolution in technology in terms of money called “Ecash”, which was later implemented
communication and informatics science which has by him, that allowed digitally transaction of cash that
contributed in making the human life smooth. The remained untraceable by the issued bank. Later this
huge growth of online users has activated the concept conceive was implemented and upgraded by different
of Virtual World and the Cryptocurrency (virtual people and kept on being advance with the time until
currency) is the one of the innovative steps. an unknown person or group named Satoshi
Cryptocurrency is the digital currency which is Nakamoto voiced and framed the ideas around and
decentralized and used technologies such as presented the first ever cryptocurrency, Bitcoin
Blockchain and Cryptography for security, production around 2009.[1] This was the first decentralized
and transaction purposes. The investment in currency which was also known as peer-to-peer
cryptocurrency in India is similar as the gold transaction. The idea behind the cryptocurrencies like
investments. Thought government has imposed strict Bitcoin was to have an electric version of cash that
regulations starting from 2022, but consideration of would allow payments directly between the parties
cryptocurrency as a legal form of currency is still without any interference of financial institute and do
unclear in India. not rely on any Financial Institution regulation. The
Keywords-Cryptocurrency, Blockchain, Cryptography technologies like Blockchain, Cryptography, Data
Mining, etc. helps to produce, maintain and secure the
I. INTRODUCTION cryptocurrency technology.[2]
Today with the growing need and demand, the
cryptocurrency market has expanded drastically and II. OBJECTIVE OF STUDY
has attracted numerous investors from all age groups 1. To analyze the future aspect of cryptocurrency
around the world. Driving into the history of in India.
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 Parashar; 2018: This paper talks about the
Fig.[4] rise of cryptocurrency India, it’s legal overview by
financial institute, it’s pros and cons. This paper also
talks about the aspects of future growth of released warning regarding the vital currencies in
cryptocurrency with respect to the developing India.[12]
technologies now days.[6]
A study on cryptocurrency in India by Dr.
Mubarak and Hosmani Manjunath; 2021: As this
paper is post covid so, this paper talks about the rise
of cryptocurrency in India during the Covid era where
the world had switched to online mode and also there
is an extensive and fast rise and advancement in
technology, thus this paper talks about the high rise in
cryptocurrency users in India and the leading services
for the same. This paper gives an overview of Bitcoin,
it’s history, legal issues and digital transactions in
India.[8]
In the technical terms like cryptocurrency and bitcoins
have captured the eye of both tech - savvy and also the
internet expert. As per the article “A Short
Introduction to World of Cryptocurrencies” by Fig.[9]
Fabiana Schar and Aleksander Berentsen, bitcoin first
came into existence with a white book that was Till the end of 2017, RBI clarified crypto as illegal
published in 2008 (Berentsen & Schar, 2018). The currency. At same time Supreme court was dealing
creators of the model intended to introduce the with two PILs with where against and in favor for
“cashless payment model” that will allow electronic regulation of cryptocurrency in India. Beside all these
transactions rather than the physical cash transactions. ongoing disputes many on the Indian Banks
so as to assist the readers understand the concept of continuously allowed the transactions in
bitcoin, the authors have highlighted the cash cryptocurrency and there was no such ban. On April
transactions further because the electronic payment 6, 2018, a circular issued by RBI closed all dealing in
system (Abdi, 2014).[11] cryptocurrency which resulted in great fall in crypto
The major difference between the normal and exchange. In Feb 2019, a bill was proposed which
Electronic payment via bitcoin is that there's no recommended a blanket cover on the trading of
involvement of physical profit the later system. cryptocurrency. Then in March 2020, the Supreme
Bitcoin could be a virtual money unit thay has no Court of India lifted the curb on cryptocurrency
physical or tangible representation (Abramaowicz, imposed by RBI which again allowed bank to provide
2016). so as to use this currency, it's necessary to access to trade in cryptocurrency. Thus, we can see the
ascertain in the least times, the whole number of a uncertainty regarding the laws regarding
money units that exist and therefore the number of a cryptocurrency. Recently in 2022 Budget, government
replacement money units that are created. Such has imposed 30% tax on the transfer of crypto assets.
approaches are highly crucial to create sure that the This makes the stake of cryptocurrency more
involved participants consent about the ownership unclear over India to be legal or not.
rights referring to a digital currency units. Bitcoin is
that the cryptocurrency that uses a “peer-to-peer” IX. FUTURE SCOPE
technological model that permits different forms of The future of cryptocurrency shows ray of developed
functions like the issuance of currency, the processing technology and advanced management system with
activities associated with the transactions, and less chance of fraud. But at the same time the head
verification process. financial institution of India, RBI fears it the most as
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).

XIII. LEGAL IMPACT

Cryptocurrency has always been in the controversial
box in India. Since 2013, its state of legality isn’t well
clear to the customers. RBI has regularly checked and
 Fig.[6] XI. REFERENCES
[1] Bhavyarajsinh Jhala-Assistant Professor, Hirva
crypto trading dominate most of the major terrorist Jadeja – Content Writer, Basic study of block-chain
and illegal activities dealing all over world. Till date and Cryptocurrency, RK University, Rajkot-Gujarat.
cryptocurrency does not has any clear stand in our [May-2021]
country India, still due to the advanced technical
influence people trade in cryptocurrency and invest in [2] Mehab Qureshi- Indian Express, Technology
the same. Journalist at Indian express.com, He is interested in
In our opinion, the future is still uncertain as cryptocurrency, NFTs, tech policy.[November-2023]
cryptocurrency, decentralized currency which is not
regulated by any financial institution is next to best [3] Mimansha verma,Scroll.in, Cryptocurrencies are
option of trading but due to its dangerous aspects of so popular in India that teenagers are investing their
involvement with illegal activities and its major flaws pocket money in them.[September-2021]
which can cause great scams and depressions in Indian
economy, there is a very less chance to be accepted by [4] Ameer rosic, Ameer’s the co-founder of
our government. blockgeeks.21st-Century Unicorn – Or The Money Of
The Future.[February-2023]
X. CONCLUSION
In our opinion, cryptocurrency is the most uncertain [5] Helios Wealth ,The Times of India, One Year of
currency in India, as its stake is still very uncertain to World’s First regulated Cryptocurrency.[April-2022]
be legal or not. However, Cryptocurrency is a modern
developed technology of trading which is [6] Nathan Reiff -Yale University, University of
continuously getting popularity and is gaining many Michigan,Katharine Beer-Hunter College, CUNY,
investors. At the same time, it is also believed that all [August-2023]
illegal activities around the world are traded via
cryptocurrency. So use of cryptocurrency in India [7] Prashanth Perumal J-The Hindu.”Future of
won’t be much appreciated. cryptocurrency in India”, June-2021
In our opinion, cryptocurrency is the most uncertain
[8] Fareha Naaz,MINT,Cryptocurrency legal tender in
currency in India, as its stake is still very uncertain to
India.[February-2022]
be legal or not. However, Cryptocurrency is a modern
developed technology of trading which is
[9] Radhika Prashar,Siddharth Suvarna-Gadget360”
continuously getting popularity and is gaining many
investors. At the same time, it is also believed that all Most Cryptocurrencies Hit by Losses”.[February-
illegal activities around the world are traded via 2024]
cryptocurrency. So, use of cryptocurrency in India
won’t be much appreciated by government or it would [10] Ameer rosic vol-2, Ameer’s the co-founder of
undergo through many restrictions as it is now. blockgeeks.21st-Century Unicorn – Or The Money Of
Also, Indian government must take a way out to The Future.[May-2023]
reform and uplift the cryptocurrency from its
[11] Growth and Future Prospectus of Crypto
drawbacks and present a refined digital currency
Currency in Global Market Study By Greeshma
which should be much more secured and free to
regulate. Francis.[2020]
India had started its first cryptocurrency trading [12] The Economic Times (NewsPaper)
through “uno coin”, which had launched many other
trading platforms like Merchant Gateway, which
allows business entity to accept bitcoin and in 2017,
BookMyShow was launched which allows public to
book shows tickets online through bitcoin.
Thus, these points shows that India had always tried to
adopt the new way of trading and someday it will
come up with some secure and legal digital currency.