Cryptocurrency in India: Cross Border Transactions and Comparative Analysis with the Indian Banking System and Money

The advent of cryptocurrency has ushered in a paradigm shift in the traditional world banking system, offering a novel approach to financial transactions and monetary systems. This research paper explores the multifaceted role of cryptocurrency in transforming the global banking landscape and by analyzing the historical context, technological underpinnings, and economic implications of cryptocurrencies, this paper aims to provide a comprehensive overview of the disruptive potential and challenges associated with this emerging financial technology. It delves into the fundamental characteristics of cryptocurrencies, highlighting their decentralized nature, cryptographic security, and digital infrastructure and examines the impact of blockchain technology in enabling secure and transparent transactions while eliminating the need for intermediaries, potentially reducing transaction costs and increasing financial inclusion. It further evaluates the implications of cryptocurrencies on traditional banking institutions, including the potential for disintermediation, the development of digital banking services, and the adoption of blockchain technology by incumbent banks. It also addresses the regulatory challenges and legal considerations surrounding cryptocurrency, highlighting the need for a coherent global regulatory framework and the economic aspects of cryptocurrencies, including their role in cross-border transactions, remittances, and financial inclusion in underserved regions and the potential for cryptocurrencies to facilitate financial services for the unbanked and under banked populations, potentially reducing financial exclusion on a global scale.