Bhavana Sahu* and Hariom Divakar
Cryptocurrency is an innovative concept of virtual/digital currency that has attracted substantial interest in last few years from the risk takers, profit seekers, general public and academic practitioners. Cryptocurrency is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a RBI or government, to uphold or maintain it. Crypto typically use decentralized control as opposed to a Central Bank Digital Currency (CBDC). Crypto has turned out to be a new avenue of investment instrument in India similar to gold. The attributes of cryptocurrency framework like decentralized network, reduced dependency on cash, no intermediaries, and the lack of stable pricing factors do not let it unlock its true potential.
The Indian cryptocurrency economy has been ranked second in global cryptocurrency adoption, just behind Vietnam. The size of the cryptotech market in India is anticipated to reach $241 million by 2030, growing at a CAGR of 14%, with the potential of creating 877,000 jobs by then. The crypto-tech ecosystem is developing rapidly with more than 230 startups mushrooming and almost $270 million invested in Indian block chain and crypto startups till 2021. About 1.8% of India’s adult population has invested in crypto until 2021, a growth of 2.2 × over a year.
This study focuses on understanding what cryptocurrency is all about and its overall impact on the Indian economy. The future of cryptocurrency is uncertain. The study also focuses on the existing scenario and future prospects of cryptocurrency in India.
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