Cash to Cryptocurrency: Evolution of Payment Technologies in India

Anticipation of further developments in the payment methods in India by inculcating cryptocurrency as one of the method
Sarthak Shingre January 29, 2024

Cash to Cryptocurrency: Evolution of Payment Technologies in India

Digitization has played a pivotal role in the development of India. If anyone in the early ages thought that instead of trading stones and rocks we would be making payments from a single click through apps like Google Pay, that would seem like a joke. India’s payment technology has come a long way, converting from barter, to cash, to UPI. It only makes one wonder what’s further down the line? Maybe from cash to cryptocurrency? Companies like Wipro are now advocating for the use of AI, machine learning, and blockchain technology as the new generation of payments. Let’s delve into this captivating journey, from 1 rupee coins to the puzzling world of cryptocurrency. 

History of “Currency” in India

Our earliest “money” consisted of barter items like food, tools, and even precious metals. In India, kingdoms specially used to issue coins for the barter system. Then came the age of paper money, offering easier management and larger denominations. Notes changed the way of the trade, fueling the growth of empires and industries. Think of paying your utility bills at the touch of a button through platforms like SBI online – it’s unthinkable without paper notes! The 20th century brought in the era of plastic. Credit cards like those offered by ICICI, with their promise of “buy now, pay later,” transformed people’s behaviour. Suddenly, you could purchase your favourite phone without carrying cash. But the real game changer was the digital revolution. The introduction of UPI and mobile banking made transactions faster, and much more convenient. Even though cash is the preferred mode of payments, India is moving up on the spectrum of a cashless economy.

What’s the future of Cryptocurrency in India?

Today, digital revolution has brought upon us cryptocurrency. Bitcoin, the first and most famous crypto, emerged in 2009, promising a decentralized, peer-to-peer payment system. Unlike traditional currencies controlled by banks, cryptocurrencies operate on blockchain technology. They ensure transparency and security. Many fintech startups are exploring the idea of blockchain tech since it helps interconnect financial infrastructure across the world. The government is also introducing several initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) for increased financial inclusion in India. While still in its nascent stages, crypto has the potential to help in such initiatives through faster global transactions and lower fees. The government also invests in India’s younger generation to disrupt the fintech industry with newer, creative ideas to tread forward on this journey of the country’s payment technologies. Sooner rather than later, we might finally be able to fitness the transition from Cash to Cryptocurrency in India.

Platforms like India Fintech Forum provide students with not only digital and financial literacy, but also have created exciting opportunities through the Fintech Olympiad. Check it out and equip yourself with the necessary financial skills for a bright future!