Research Paper Presentation

1. DIGITAL CURRENCY IN INDIA – THE FUTURE OF YOUR MONEY.
Department of Business Management, St. Joseph’s Degree & PG College
N. Saisha
MBA Student – 121422672090
Srinivasa Gamanika
MBA Student – 121422672114
Saniya Afreen
MBA Student – 121422672110
Dr. S. Venkata Siva Kumar
Associate Professor & CoE (PGDM)

2. ABSTRACT
The information and communication technology era has created numerous
opportunities in every field. The financial and business sectors have benefited the
most from recent developments. The scope and speed of technological evolution,
customer perception, and widespread acceptance indicate that these technologies
and disruptions will transform the finance and banking sector as we know it,
providing both opportunities and challenges to financial institutions. The findings of
a review of selected peer- reviewed academic articles are presented in this article.
The paper makes a case for the digital currencies - uses, types, advantages and
challenges. It also emphasises the relevance of the future use of digital currency,
the arguments for and against a cashless society. Among all the growth, there is a
huge opportunity to transform investment and lending patterns with the help of
technologies that are more customer-centric and efficient. As a result, technologies
such as blockchain seek to drive innovation across multiple industries in India.
Cryptocurrencies are the most important aspect of the blockchain era. They are said
to be the most disruptive technologies in this field. This paper concludes by
predicting the future of digital currency in India based on international experience.
Keywords: Crypto Currency, Digital Currency, RBI.

3. INTRODUCTION
Digital currencies were made available through electronic payment mechanisms such as the Sabre (a heavy sword with a curved
blade that was used in the past by soldiers). David Chaum's research paper "Blind Signatures for Untraceable Payments" proposed
the concept of digital currency in 1983. To commercialise the ideas in his research, he launched Digi-Cash, an electronic cash
starts up, in Amsterdam in 1989. On October 7, 2022, the Reserve Bank of India (RBI) issued a concept note on Central Bank
Digital Currency (CBDC). On December 12, 2022, Union Minister of State for Finance Shri Pankaj Chaudhary stated in Lok
Sabha. The Reserve Bank of India has decided to launch the pilot of its central bank digital currency (CBDC), which it categorizes
as legal tender in a digital form. Commonly known as the digital rupee, it will be exchangeable at par with existing currencies and
will be considered acceptable for payments and a safe store of value.

4. INTRODUCTION
DIGITAL RUPEE:
A digital currency is any currency that is only available electronically. Electronic currencies now dominate a huge number of
countries' financial systems. Digital currency, on the other hand, is only exchanged electronically and never leaves a computer
network. Crypto currency, central bank digital currency (CBDCs), and stable coins are the three major types of digital currency.
Block chain technology, the most common type of distributed ledger utilised by digital currencies, serves as the cornerstone of
crypto currency. According to Coin Market Cap, there are over 21,000 crypt currencies available.

5. OBJECTIVES OF THE STUDY
To explore the need and types of digital currency.
To understand the advantages and challenges of introducing digital
currency in India.
To review various literature on the future of digital currency

6. NEED AND TYPES OF DIGITAL CURRENCY:
THE NEED FOR DIGITAL CURRENCY:
Digital currency will help to strengthen the digital economy, improve payment systems, lower costs associated with
physical cash management, and add to greater financial inclusion.
THE FOLLOWING ARE ESSENTIAL ROLES FOR DIGITAL CURRENCY:
1. Extremely Fast Transfer and Transaction Times: Payments in digital currencies are generally instantaneous
because they are made directly between the transacting parties without the need for any intermediaries.
2. There is no need for physical manufacturing: Physical manufacturing sites are not required for digital currencies.
Such currencies are also impervious to physical flaws or soiling that can occur in real currency.
3. Lower Transaction Fees: Digital currencies can reduce the total cost of a transaction by eliminating middlemen
who seek economic rent from processing the transaction.

7. DIGITAL CURRENCY TYPES:
a) Digital Currencies Issued by Central Banks (CBDCs): CBDCs facilitate monetary policy implementation by
eliminating intermediaries and creating a direct link between the government & average citizen. CBDCs can be
classified into two kinds based on their intended use. CBDCs for retail and CBDCs for wholesale.
b) Crypto currency: Crypt currencies are digital currencies based on encryption. A crypto wrapper around a digital
currency increases security and makes operations tamper-resistant. Bitcoin and Ethereum are the most widely used
coins.
c) Stable coins: Stable coins are a type of cryptocurrency that was created to combat the price fluctuation of
traditional crypto currencies. They can serve as a substitute for fiat currencies, but they are not backed by government
power.
FUTURE OF DIGITAL CURRENCY IN INDIA: The RBI hit the ground running by introducing India's first
digital currency. The government would most likely regard the Digital E-Rupee to be a seamless substitute for paper
money in India. Its pilot is now in the testing phase. Private enterprises and governments can lower the cost of their
entire money operations across public and private channels by 4-5 times by utilising blockchain and associated
technology. While UPI technology originated in India, CBDC competition is thriving abroad. The true rivalry in this
scenario is to develop and spread the supremacy of the country's CBDC or digital currency across numerous
geographies.

8. ADVANTAGES AND CHALLENGES OF INTRODUCING DIGITAL CURRENCY IN INDIA
• ADVANTAGES:
a) Faster Payment Mode: Digital currency allows you to make payments considerably faster than traditional methods
such as automated clearing houses or wire transfers, which can take days for financial institutions to confirm a
transaction.
b) Cheaper International Transfers: Global transactions can be highly pricey at times. Digital assets have the potential
to disrupt this market by making transactions more cost-effective.
c) Availability 24 hours a day, 7 days a week : Transactions with digital currency occur at the same rate, i.e. 24 hours
a day, seven days a week. Existing money transfers, on the other hand, usually take longer during weekends and
outside of normal business hours because banks are closed and cannot validate transactions.
CHALLENGES:
a) A Sharp Learning Curve: Digital currencies necessitate effort on the part of the user to learn core activities such as
how to open a digital wallet and securely store digital assets. The mechanism must be simplified in order for
digital currencies to be widely used.
b) Cybersecurity Concerns: People are continually concerned about cybersecurity and face several hazards as a result
of less secure methods of storing digital currencies. Cyberattacks are likely to increase, threatening digital
currency users with virtual thievery.

9. LITERATURE REVIEW
AUTHOR & YEAR FINDINGS JOURNALS
Srijanie Banerjee (2023) According to research, india's financial system plays a significant role in the cbdc's
implementation. This research will highlight cbdc's potential to increase financial
inclusion. The proposed study can aid in identifying the gaps in India's financial
inclusion and in designing CBDC. The proposed research can also establish
policymakers' roles in maximising consumer benefits. The study establishes RBI's
potential role in the smooth operation of CBDC implementation. The study highlights
the payment system trend in India, which opens up the possibility of positive CBDC
implementation and its benefits spreading among consumers.
Banerjee, Srijanie and Sinha, Manish,
Promoting Financial Inclusion through Central
Bank Digital Currency: An Evaluation of
Payment System Viability in India, Australasian
Accounting, Business and Finance Journal,
17(1), 2023, 176-204.
doi:10.14453/aabfj.v17i1.14
Mr. Shivam Tripathi, Mr.
Ashutosh Chaubey, Ms.
Ishanki Goel (2022)
Looking at previous references, the following paper discusses the introduction to
central bank digital currency (CBDC) and how the adoption of such a measure will
result in a developing economy like India. The purpose of this paper is to reach new
levels of adoption procedures and to demonstrate why it is critical to introduce such a
concept at a young age. The committee creating such a digital currency has many
options, such as hash graph or blockchain, POW or POS framework, using ABFT or
not, and so on. The paper concludes by determining the best measures a committee can
use to frame CBDCs, discussing the pros and cons while timing the launch based on
certain indices that are available but are less well known in general.
Tripathi, S., Chaubey, A., & Goel, I. (2022).
AN EMPIRICAL ANALYSIS OF
POTENTIAL CENTRAL BANK DIGITAL
CURRENCY ADOPTION PROCEDURE BY
INDIAN GOVERNMENT AND ITS
IMPLICATIONS. Sachetas, 1(1), 32–38.
https://doi.org/10.55955/110006
Barry Eichengreen,
Poonam Gupta, Tim
Marple (2022)
aimed to conduct a research on, the arguments for CBDC issuance in India. These
include making payments easier, increasing financial inclusion, allowing the central
bank and government to maintain control of the payments system, etc. Then they
compared India's progress to that of other countries. Finally, they developed a strategy
and timetable for India’s CBDC project going forward.

10. LITERATURE REVIEW
AUTHOR & YEAR FINDINGS JOURNALS
Rashmi Dabbeeru, D.N.
Rao, Seema Bushra,
Krity Gulati (2022)
conducted a literature review the goal of this exploratory study was to investigate the
benefits, prospects, risks, and challenges of launching digital currency in India.
Furthermore, the article delves briefly into the evolution and growth of digital
currencies globally, as well as regulatory aspects and market operations.
Dabbeeru R, Rao DN, Bushra S, Gulati K.
Prospects and Challenges of Introducing
Digital Currency in Indian Economy. SSRN;
2022. DOI: 10.2139/ssrn.4254799.
Shamim Ahmad Farooqui
(2022)
This paper provides a guided tour through the developing literature on cbdc's on the
microeconomic considerations associated with functional structures, innovation, and
security, as well as the macroeconomic implications for the monetary framework,
monetary dependability, and financial arrangement.
Farooqui, S. A. . (2022). “Digital Currencies”
an unsecure and unclear economic window,
need to regulate or to ban in India.
RESEARCH REVIEW International Journal of
Multidisciplinary, 7(1), 58–64.
https://doi.org/10.31305/rrijm.2022.v07.i01.008
Debesh Bhowmik (2021) The benefits of CBDC, the digital payment situation in india, and banking literacy are
the primary topics of this paper, which discusses the various analytical frameworks of
central bank digital currency monetary policy avenues developed by several
economists involved in the research of CBDC issuances, designs, and applications,
some of whose positive impacts are still unexplored.
Debesh Bhowmik. (2021). Monetary Policy
Implications of Central Bank Digital Currency
with Special Reference to India. Asia-Pacific
Journal of Management and Technology
(AJMT), 2(3), 1-8.
https://doi.org/10.46977/apjmt.2022v02i03.001
Raghava Suresh
Samudrala, Srinivasa
Kumar Yerchuru (2021)
Over 60 central banks around the world are experimenting with central bank digital
currency (CBDC). Distributed ledger technology (DLT), the foundation for crypto
currencies, is one option for CBDC implementation. CBDC adoption is expected to
benefit real-time payments, continued access to central bank money, financial
inclusion, and the tracking of illicit activities. This paper discusses the risks and
challenges associated with CBDC implementation. In addition
Samudrala, raghava suresh & yerchuru,
srinivasa kumar. (2021). Central bank digital
currency: risks, challenges and design
considerations for india. CSI transactions on
ICT. 9. 10.1007/s40012-021-00344-5.

11. LITERATURE REVIEW
AUTHOR & YEAR FINDINGS JOURNAL CITATION
Mohammed Arshad
Khan (2021)
This study seeks to assess the current position of digital payment modalities in India.
This research, widely regarded as a success story in the making, investigates several
instrumental factors in india's digital payment systems. It also identifies the impact of
demographic characteristics and constructive variables, such as service quality,
reliability, satisfaction, and security, on the digital payment system in India.
Mohammed Arshad Khan, "Netizens’
Perspective towards Electronic Money and Its
Essence in the Virtual Economy: An Empirical
Analysis with Special Reference to Delhi-NCR,
India", Complexity, vol. 2021, Article ID
7772929, 18 pages, 2021.
https://doi.org/10.1155/2021/7772929
Santosha Kumar
Mallick, D.M. Arvind
Mallik (2021)
This paper examines the relationship between Cryptocurrencies and Official Indian
Currencies foreign exchange rates A literature review was conducted on the current rise
in the importance of cryptocurrencies, as well as the relationship between crypto-
currencies and the foreign exchange rates of Indian currencies. The research also
reveals that Indian foreign exchange markets have little impact on cryptocurrency
markets, which could be attributed to the government's lack of legal recognition.
Mallick, S. K., & Mallik, D. M. A. (2021). A
study on the relationship between Crypto-
currencies and official Indian foreign exchange
rates. Materials Today: Proceedings.
https://doi.org/10.1016/j.matpr.2021.07.383
Viraja Bhat, Jeevan
Nagarkar, Ayushi Singh
(2021)
Cryptocurrencies are the most important part of the blockchain era. They are widely
regarded as the most disruptive technologies in this field. This paper attempts to
forecast the future of digital currency in india based on international experience.
Bhat, Viraja & Nagarkar, Jeevan & Singh,
Ayushi. (2021). Prospects of Digital Currency
in India - A Way Forward. Revista Gestão
Inovação e Tecnologias. 11. 5247-5266.
10.47059/revistageintec.v11i4.2560.
D Priyadarshini,
Sabyasachi Kar (2021)
In this paper, we discuss these issues conceptually and specifically in the indian
context. We demonstrate that conceptual issues can be classified into three categories:
monetary sovereignty issues, national sovereignty issues, and developmental issues. In
the indian context, we examine these issues through the lens of the country's rapid
digitalization.

12. LITERATURE REVIEW
AUTHOR & YEAR FINDINGS JOURNAL CITATION
Satish Babu and K.M.
Abraham (2021)
This paper examines cbdcs and discusses some of the policy and operational aspects
that an indian CBDC launch should take into account. Cryptocurrencies are an
innovation that combines computing, networking, and an incentive regime to create a
secure, decentralised, peer-to-peer digital currency that can be used as a medium of
exchange and value storage. Most Central Banks have been hesitant to allow
cryptocurrencies due to the risks they pose to the financial system, and have leaned
towards Central Banks. Digital currency, also known as "digital fiat," shares many
benefits with cryptocurrencies but is entirely mandated and managed by the central
bank.
Babu, S., Abraham, K.M. Central bank digital
currencies: policy and operational perspectives
for India. CSIT 9, 85–94 (2021).
https://doi.org/10.1007/s40012-021-00327-6
Handa Shreya (2020) Every day, we make incremental progress towards a more developed and digital
economy. When considering the concept of a digital currency for india, this paper
carefully considers and examines all sides of the coin.
Handa, S. (2020). Digital currency - a
revolution in the payment landscape of India.
Asian Journal of Research in Banking and
Finance, 10(10), 14.
https://doi.org/10.5958/2249-
7323.2020.00011.5
Chowdhury pingala roy
(2019)
This paper compares the top five cryptocurrencies available in india based on market
capitalisation. It also intends to highlight the benefits and drawbacks of each
cryptocurrency category, as well as a preference for one cryptocurrency over another.
The paper also investigates whether cryptocurrency is accepted in addition to
traditional modes of payment. The examination of various characteristics of the five
cryptocurrencies revealed that each cryptocurrency is both technically and significantly
different in terms of transaction speed. It is also concluded that, despite the strikingly
high price of cryptocurrencies, the reasons for not investing in them outweigh the
reasons for investing in them.
Chowdhury, P.R. (2018). Cryptocurrency: A
comparative study of top five digital currencies
in india. MUDRA: journal of finance and
accounting, 5(2), 26-44.

13. DISCUSSION & CONCLUSION
The Digital Rupee is highly promising to all dimensions of Indian society, as we just saw.
They are assets that are traded electronically. Many national administrations are
contemplating the creation of their own centralised digital currencies. The digital rupee can
be used for a variety of purposes in the real world, including programmable payments for
subsidies and faster lending and payments by financial institutions. In the near future, there
may be a pragmatic shift towards a cashless economy, which would support the
government's push for cashless payments and benefit the banking sector. As the digital
rupee becomes more widely used, it may improve services such as cross-border remittances.

14. REFERENCES
Banerjee, Srijanie and Sinha, Manish, Promoting Financial Inclusion through Central Bank Digital Currency: An Evaluation of Payment System Viability in
India, Australasian Accounting, Business and Finance Journal, 17(1), 2023, 176-204. doi:10.14453/aabfj.v17i1.14
Tripathi, S., Chaubey, A., & Goel, I. (2022). AN EMPIRICAL ANALYSIS OF POTENTIAL CENTRAL BANK DIGITAL CURRENCY ADOPTION
PROCEDURE BY INDIAN GOVERNMENT AND ITS IMPLICATIONS. Sachetas, 1(1), 32–38. https://doi.org/10.55955/110006
Eichengreen, B. (2022). A Central Bank Digital Currency For India? Indian Public Policy Review, 3(4 (Jul-Sep)), 1–29.
https://doi.org/10.55763/ippr.2022.03.04.001
Dabbeeru R, Rao DN, Bushra S, Gulati K. Prospects and Challenges of Introducing Digital Currency in Indian Economy. SSRN; 2022. DOI:
10.2139/ssrn.4254799.
Farooqui, S. A. . (2022). “Digital Currencies” an unsecure and unclear economic window, need to regulate or to ban in India. RESEARCH REVIEW
International Journal of Multidisciplinary, 7(1), 58–64. https://doi.org/10.31305/rrijm.2022.v07.i01.008
Debesh Bhowmik. (2021). Monetary Policy Implications of Central Bank Digital Currency with Special Reference to India. Asia-Pacific Journal of
Management and Technology (AJMT), 2(3), 1-8. https://doi.org/10.46977/apjmt.2022v02i03.001
Samudrala, Raghava Suresh & Yerchuru, Srinivasa Kumar. (2021). Central bank digital currency: risks, challenges and design considerations for India. CSI
Transactions on ICT. 9. 10.1007/s40012-021-00344-5.
Mohammed Arshad Khan, "Netizens’ Perspective towards Electronic Money and Its Essence in the Virtual Economy: An Empirical Analysis with Special
Reference to Delhi-NCR, India", Complexity, vol. 2021, Article ID 7772929, 18 pages, 2021. https://doi.org/10.1155/2021/7772929
Mallick, S. K., & Mallik, D. M. A. (2021). A study on the relationship between Crypto-currencies and official Indian foreign exchange rates. Materials Today:
Proceedings. https://doi.org/10.1016/j.matpr.2021.07.383
Bhat, Viraja & Nagarkar, Jeevan & Singh, Ayushi. (2021). Prospects of Digital Currency in India - A Way Forward. Revista Gestão Inovação e Tecnologias. 11.
5247-5266. 10.47059/revistageintec.v11i4.2560.
Babu, S., Abraham, K.M. Central bank digital currencies: policy and operational perspectives for India. CSIT 9, 85–94 (2021). https://doi.org/10.1007/s40012-
021-00327-6
Handa, S. (2020). Digital currency - a revolution in the payment landscape of India. Asian Journal of Research in Banking and Finance, 10(10), 14.
https://doi.org/10.5958/2249-7323.2020.00011.5
Chowdhury, P.R. (2018). Cryptocurrency: A Comparative Study of Top Five Digital Currencies in India. MUDRA: Journal of Finance and Accounting, 5(2),
26-44.