Hii everyone, I will be talking about The evolution of virtual currencies in the global economy.

The
main reason that the world of virtual coins has evolved this much is because they are located in
a decentralized system. What does this mean? It means that it is not regulated by any country or
existing Government.

Cryptocurrencies are present in the world from just a decade ago and, although at the beginning,
the society did not trust much in their use, that view has changed over the years. Everyone was
accustomed to use traditional physical money and if they didn’t pay with that money they felt
uncomfortable. But… things have changed. Next slide

What does bitcoin mean for the economy? Digital money is not becoming a substitute for real
currency, but it can become an impetus for the formation of a new currency system.
Cryptocurrencies affect the economic, political, cultural, and social life of humankind. Let’s see
how…Next slide

The rate at which the cryptocurrency industry is growing is earth-shattering and this can be

confirmed by early adopters that became rich overnight and found opportunities to grow

financially. Because of it’s high volatility and ease of use, less-developed countries have more

chances of engaging in financial markets and of raising their own economic and social status. The

costs associated with their transactions are minimal. People can monitor where policy funds are to

be guided and thereby have a say over their policies, and this is one of the reasons behind the

uses of cryptocurrency. Next slide

The transparency of transactions has increased. When the process becomes automated and

digitized for blockchain and cryptocurrency, everything gets monitored. The best thing is that

neither individuals nor corporations can exploit it, which significantly reduces the possibility of

coercion and fraud. One factor to look at is that it has allowed entrepreneurs more control. There

was no better time for businesses than now in the way that cryptocurrency and blockchain

technologies might help companies access more capital. BitPesa is one of the companies in Africa

that supports business owners with European, American, and Asian companies to make financial

transactions. The reason was to promote the advancement of investment and a healthier

commercial partnership with the rest of the world across both small and medium enterprises. .All of

these are ending up in term of a beneficial rise in economic activities….Next slide…

The world is changing and it’s changing quickly. The speed at which cryptocurrencies are taking
over is a clear indicator that traditional financial institutions can no longer hold the fort so well and
that other financial needs are arising and need to be addressed. Similarly, the world is facing a
growing need to tear down borders, in search of a complete social and financial inclusion - this
blockchain technology has everything it needs to address such issues. Next slide
Cryptocurrency in India,,,,Cryptocurrency like Bitcoin has become popular in India like other

nations as the volume of Indian rupee being traded in cryptocurrency have been at the highest

post demonetisation. Researches shows that the volume generated by the rupee dominated

cryptocurrency is the third largest volume traded after American dollar and yen. In spite of its

enormous population, India only contributes two percent of the whole global cryptocurrency market

capitalization. The impact is of cryptocurrencies on the Indian economy is clearly depicted as the

prices of cryptocurrency market are now falling down. Indian government has made it clear with

their stand of not providing a legal status for cryptocurrency in India. Next slide

The reason for this kind of a decision from government hails because Cryptocurrencies in Indian

context portrays few limitations. They are as follows: 1. Reliability and security: Cryptocurrency for

its characteristic of being a digital mode of transaction, it has become a very common platform for

hackers, terror finance, drug transaction, and money laundering. This has brought tiredness

among the population to a larger extent as it brings lesser security and lack of reliability. 2.

Speculative and risky: There are various types of cryptocurrencies available in the market and

these cryptocurrencies functions on the speculative market it creates. Not all the cryptocurrencies

may fetch good returns for a cryptocurrency investor. The price is purely decided upon the

demand supply of the cryptocurrency. Speculation becomes the key player in case of pricing

cryptocurrency and hence the risk factor comes in. 3. Taxing trouble: The income Tax rules don’t

make it clear on the taxability of cryptocurrency gains. However the income tax authorities haven’t

ruled out the possibility of taxing the gain out of cryptocurrencies. If an investor makes a capital

gain from the investments of cryptocurrencies, it invites tax liability as long term capital gain or

short term capital depending upon the period of holding the cryptocurrency.

Next slide 4. Lack of regulatory body: Indian government is following a wait and watch policy

towards cryptocurrencies; where as other nations of the world have already responded to the use

of cryptocurrency. There are no regulatory body to look after the transaction of cryptocurrencies.

This has led to increased chances of fraud, threat to investor protection. RBI along with other

central banks of the world was unable to track the activities of cryptocurrencies. 5. Price Volatility

and KYC Norms: Cryptocurrency is a highly volatile market as the pricing strategy depends upon

demand and supplies along with speculation, Hence an investor who signs up for a cryptocurrency

transaction have to go under the KYC norms which may take some time for the approval by the
respective wallets. This approval time taken could vary from wallet to wallet and may even take a

few days time. In such cases the investor tends to lose the chance of making profit as the value of

the currency would be fluctuating at a larger pace. Next slide

Present and future of Cryptocurrency in India

The RBI initially was against the trading of cryptocurrencies in India, however in the year 2014 RBI

showed its interest in block chain technology used by cryptoc to reduce the physical paper

currency circulation. In 2015, a financial stability report was published by RBI to identify the

importance of private blockchain. In 2016, ICICI bank with Emirates NBD has executed

transactions and remittance using block chain technology. Then in 2017, a white paper has been

issued by Institute for Development and Research in Banking Technology of RBI and also a pilot

test was taken. The Union finance minister in his Union Budget 2018 speech said, “The

government does not consider cryptocurrencies legal tender or coin and will take all measures to

eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment

system.” Next slide

Presently there is no regulation in India for cryptocurrencies. The absence of a regulation certain

bitcoin exchanges such as Unocoin, Zebpay, etc have initiated their operation in trading or

cryptocurrencies with (KYC) norms. Though government is taking a cautious approach on

cryptocurrencies, it is bullish on the use of blockchain. Mean while private companies dealing in

cryptocurrencies have set up an association called, the Digital Assets and Blockchain foundation

which has been engaged in educating the public on the advantageous and investment avenues in

cryptocurrency by conducting security checks, identification documents issued by the government,

(PAN) or Aadhaar.

Cryptocurrency always caught people’s interest. Even more so since Eeeelon Musk’s tweets about
bitcoin and the way its value shot up. What was once a thing for only tech-savvy people is now
common knowledge for non-technical people as well. 
The Indian perspective about cryptocurrency or digital currency has changed drastically. Now,
India is a country with quite a few promising cryptocurrency-based startups like Zebpay, Coindelta,
One of these startups is Laxmicoin, India’s first cryptocurrency. Next slide
Laxmicoin is India’s answer to foreign cryptocurrencies, created by Raj Dangi and a Silicon Valley-
based brainiac Mitts Daki. According to the founders, Laxmicoin will use blockchain technology,
similar to bitcoin, and will expectedly have a total coin supply of 30 million. Team Laxmicoin also
want to donate Laxmicoins to NGOs, colleges, and use it to support other social causes. …Next
slide

It will only be a matter of time until these cryptocurrencies definitively find a way into our lives,
shaping them for the better, with economic growth and inclusion in mind. Millions of people will
now have the opportunity to invest, send money across borders, save money and start a business
thanks to the amazing possibilities that cryptocurrencies bring to the table.

As the arrival of internet, cryptocurrency has a tremendous growth potential. With the help of both
these factors of internet and blockchain technology, in future there are also probabilities of virtual
banks in India. Thus, Future of cryptocurrency in India looks promising and there is a ray of hope.
Next slide

 Now, let’s have a look at a fun fact! Lam-bor-ghini was the first automotive company that
accepted the use of bitcoins. And interestingly the buyer paid only $115.

That’s on my part