QUE: What is cryptocurrency? How does it affect global society? Does it affect Indian society as well?

Cryptocurrency is a virtual currency, which is based on blockchain technology. It uses cryptography to securely transact and is not controlled by any central authority (such as a bank or government). Examples of cryptocurrencies include Bitcoin, Ethereum and Ripple. Its main features include decentralization, transparency and low transaction costs.

• Impact on global society:

Economic freedom: Cryptocurrencies allow people to make global transactions without the banking system, especially in countries where banking services are limited.

Financial innovation: Blockchain-based systems make financial services more efficient.

Risks: Cryptocurrencies are subject to volatile prices, cyberattacks, and misuse for illegal activities (such as money laundering).

Regulatory Challenges: Crypto regulation is still unclear in many countries, which has implications for the global economy.

Technological Advances: Blockchain technology is driving innovation in areas such as supply chain, healthcare, and governance.

• Impact on Indian Society:

Investment Opportunities: Young and tech-savvy individuals in India are investing in cryptocurrencies, which is opening up new economic opportunities. Bitcoin and other cryptos have grown in popularity.

Remittances: Crypto can be a fast and low-cost means of sending remittances (money sent from abroad) for Indians living abroad.

Regulatory Uncertainty: There are no clear regulations on cryptocurrencies by the Indian government and the RBI. In 2022, India imposed a 30% tax and 1% TDS on crypto transactions, which affects investors. In 2025, the regulations on cryptocurrencies in India are still under development, including measures such as CBDC (Central Bank Digital Currency).

Risks: Cases of crypto scams and fraud have increased in India, which is especially dangerous for new investors. Technological development: Blockchain startups and the use of technology are increasing in India, which is promoting jobs and innovation.

            Thus, cryptocurrencies are bringing economic, technological and social changes in global and Indian society. However, a cautious approach is required due to the risks and regulatory challenges associated with them. The future of crypto in India depends on government regulation and informed use by the public.