This document summarizes a report on the impact of cryptocurrencies on the Indian economy. It begins by explaining how cryptocurrency works using cryptography and blockchain technology. It then discusses the growth of the bitcoin market and the rise of bitcoin exchanges and transactions in India since 2012. The report notes challenges faced by bitcoin in India like security threats, money laundering risks, and its unknown impact on the real monetary system. It also outlines benefits of cryptocurrency and the Indian government's consideration of regulating cryptocurrency through new laws and a potential central bank digital currency. The report concludes that cryptocurrency presents both new risks and potential as a decentralized payment system.

1. MAKING SENSE OF CRYPTOCURRENCIES:
ITS IMPACT ON INDIAN ECONOMY
SHANMUGESHWARI M CB.BU.P2MBA19142
SHUBHAM LOYA CB.BU.P2MBA19145
SURAKSHA J A CB.BU.P2MBA19163
PRIYADHARSHINI C CB.BU.P2MBA19118
MEGHA E V CB.BU.P2MBA19090
SRINATH R CB.BU.P2MBA19160
TEAM 3

2. HOW IS CRYPTOCURRENCY THE INTERNET
MONEY?
Uses cryptography
for security
Converts information into
a code
Transactions are verified
by the user's computers
Impossible to increase
the money supply
Limited entries in a
database
Essential to people
value privacy
Available on
network for
verification
Every transaction
forms a blockchain.
Users act as
intermediary
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3. THE BITCOIN MARKET IS GROWING
EXPONENTIALLY!
Over 1600 and
growing
Can be created at
any time
Largest blockchain
network
High market capital
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4. THE RISE OF BITCOINS IN INDIA
• 2012 – bitcoin transactions started within the country
• Pizza shop Kolonial in Mumbai
• Btcxindia, Unocoin, Coinsecure – exchange & trading services
• OTC crypto-shops, bitcoin ATMs in major Indian cities
• Only 2% of the total global cryptocurrency market cap
• High cryptocurrency prices – 5 to 10% compared to the global average
• RBI’s role – No ban, no endorsement either
• Lack of large-scale mining facilities
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5. BITCOIN AS A PAYMENT AND MONETARY SYSTEM
• Operates a retail payment system with intermediaries
• Make payments free of charge, recovering costs through profits
• Price advantage is not based on a cost advantage
• Innovative payment network
• Uses peer-to-peer technology to operate with no central authority
• Managing transactions and the issuing by the network
• Companies using bitcoin
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6. IMPACTS OF BITCOINS IN BANKING, FINANCE
AND THE ECONOMIES
Power to the
dark web
01
Speculation
02
Politicization
of money
03
Apprehension
among the
Central banks
04
The
emergence of
new markets
05
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7. WHAT ARE THE CHALLENGES AND ISSUES
FACED BY BITCOIN IN THE INDIAN ECONOMY?
• Security threats
• Impact on real monetary system
• Gold farming risks
• Money laundering
• Black market for crypto currency
• Unknown identity risks
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8. HOW BITCOINS ARE BENEFICIAL?
Anonymous and
private
Payment freedom
and quick
Low/minimal fees
Fewer risks
Can’t steal your
payment
information
Can create your
own money
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9. INDIAN GOVERNMENT STANDARDS ON
CRYPTOCURRENCY
Committee to
draft crypto law
Working with
FATF and G20
RBI banking
restriction
Supreme court
hearing
Discussions at
blockchain
summit
Potential central
bank digital
currency
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10. A SPECULATIVE ASSET WITH POTENTIAL
• Interesting proposal for a decentralized payment system
• Exposes users to a number of new risks and costs
• Price hikes and speculation
• If legalized, it will have various impacts like further increase trading volumes
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11. THANK YOU!
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