The Impact of Digital Currencies on International Trade and Economic Growth in India

Digital currencies have been gaining popularity all over the world for several years. This chapter deals with various aspects of digital currencies including their evolution, types, and positive and negative dimensions. This is a descriptive study, which aims to discuss the potential benefits of digital currencies and their impact on international trade and the economic growth of the Indian economy. Secondary data taken from various reliable sources such as the Reserve Bank of India (RBI) official website including RBI press releases 2022–2023, Digidhan Dashboard of Government of India, and Statista Market Insights (Digital Payments—Worldwide) data are used in the study to show the growth of digital transactions and its value over the years from 2017 to 2022. The study shows that although the use of digital currencies is beneficial for the development of international trade and the economic growth of a nation, several challenges associated with the use of digital currencies need to be addressed to drain out its full potential.