Subject: Indian Society

In recent years, cryptocurrency has emerged as a transformative digital innovation, with the global market cap reaching $3.28 trillion as of June 2025, revolutionizing traditional financial systems and societal interactions.

Understanding Cryptocurrency

• Digital Currency: A decentralized form of money that operates on blockchain technology, ensuring transparency and security through cryptographic methods.
• Key Features: Operates without central authority control, enables peer-to-peer transactions, and maintains anonymity of users.
• Popular Types: Bitcoin (trading at $105,828), Ethereum, and various altcoins representing different technological applications.

Global Societal Impact

• Financial Inclusion: Provides access to banking services for the unbanked population, particularly in developing nations.
• Economic Disruption:
  • Creates new investment opportunities and wealth generation channels.
  • Challenges traditional banking systems and monetary policies.
• Environmental Concerns: High energy consumption in crypto mining affects global sustainability goals.
• Security Implications: Rise in cyber crimes and potential use in illegal activities.

Impact on Indian Society

• Growing Adoption:
  • 94 million users in 2025, projected to reach 328 million by 2027.
  • Younger generation showing increased interest in crypto investments.
• Regulatory Framework:
  • Implementation of 30% tax on crypto trading profits.
  • 1% TDS on transactions exceeding ₹50,000.
• Socio-Economic Effects:
  • Creating new employment opportunities in fintech sector.
  • Contributing to digital literacy and technological advancement.
• Challenges:
  • Market volatility affecting investor confidence (value dropped from $3 trillion to $1 trillion between 2021-2023).
  • Lack of comprehensive regulations leading to uncertainty.
  • Digital divide limiting access in rural areas.

The emergence of cryptocurrency represents a significant technological and social transformation, requiring balanced regulation and awareness. While India moves towards digital innovation through initiatives like Digital India, the need for comprehensive crypto regulations and financial literacy programs remains crucial for sustainable and inclusive growth.