Indian Cryptocurrency: The Future!

Abstract

In the Union Budget 2022-2023, Finance Minister Nirmala Sitharaman made two pronouncements that will greatly impact the Indian crypto asset market. The Digital Rupee will be adopted in the fiscal year 2022-2023, and the Indian government will impose a 30% tax on the earnings generated by crypto assets. The Indian government has finally decided to accept cryptocurrencies after much hesitation and trepidation. Although there is still some uncertainty over the future of cryptocurrencies, these announcements have sent a strong message to enthusiasts that cryptocurrencies are getting closer to becoming legal in the country.

Although cryptocurrencies have been in use since 2009, they have recently seen unprecedented growth in this asset class. Younger investors, who have a greater appetite for risk and are passionate about obtaining the necessary financial education to benefit from the ever-evolving environment of digital finance, are particularly fond of crypto assets. The Economic Times reported that almost 20 million Indians are involved in bitcoin trading.

According to Chainalysis, a business specializing in blockchain analysis, the global use of cryptocurrencies will increase by 880% in 2021. India ranked second after Vietnam, with an index score of 0.37. The Indian cryptocurrency market increased by 641% in a single year. The global cryptocurrency business has much promise and is developing quickly. The present paper discusses the details of the future of Indian cryptocurrencies.