Assessing the Impact of Cryptocurrencies on Contemporary Indian and Global Financial Markets

Abstract

The rapid growth of cryptocurrencies has introduced significant shifts in global financial markets, reshaping traditional financial structures and accelerating the pace of digital financial innovation. This paper examines the multifaceted impact of cryptocurrencies on financial markets, focusing on their role in fostering decentralised finance (DeFi), the increasing adoption of blockchain-based smart contracts, and the transformation of financial services through enhanced efficiency, transparency, and accessibility. At the same time, the study analyses the challenges posed by the inherent volatility of cryptocurrency markets, highlighting the heightened risks faced by investors and the implications for institutional participation, regulatory oversight, and market stability. By exploring both the opportunities and vulnerabilities associated with digital assets, this paper provides a comprehensive evaluation of how cryptocurrencies are redefining global financial interactions and influencing the future trajectory of the financial ecosystem.