Dynamics of Cryptocurrency in Emerging Markets: A Study on India and Africa

Abstract

Although cryptocurrency used to be a very new and significant financial innovation; now it is known to at least one person in a family who believes that it is a good option to invest in cryptocurrency. The concept of investing in crypto got light when people started getting multiple returns overnight. So, apart from investing in equity, investors started preferring to invest in virtual currencies including cryptocurrency. In India, cryptocurrency has been gaining popularity in the past few years as people have started to learn more about digital currency and what amendments will it bring with the adoption of cryptocurrency in India. Cryptocurrency transactions have grown exponentially in Africa pre- and post-pandemic, which is a pointer that despite the socio-economic downturn faced by most African countries, cryptocurrency is seen as a way out for the vast youth populace. The decentralization of blockchain technology has enabled undeterred participation in cryptocurrency transactions, favoring regions like India and Africa. However, issues of legal regulations of cryptocurrency have 136 been the bone of contention across regions. This work navigates ways India and some African countries are exploring to include this fast-growing system in their economies, and it also assesses the ban on cryptocurrency in countries like Nigeria, Morocco, Zimbabwe, and Namibia. This paper talks about its adoption barriers, legal issues pertaining to investment, and regulatory framework of cryptocurrency in India and Africa. This paper also captures the present state of research on legal challenges related to the applicability of cryptocurrency in India and Africa by providing a critical review of the current frame of data. The author tries to review key systems and concepts, identifies contradictions when compared to the applicability in both countries, and provides explanations toward a common understanding. Toward this work, a well-reviewed and integrated construct has been proposed so that the probable investors would be able to know the accurate status quo and future implications of the same.