Cryptocurrency and Financial Inclusion in India: A Legal Analysis of Emerging Frameworks and Constitutional Considerations

ABSTRACT

Across the world, the rapid growth of cryptocurrency has compelled governments to reconsider the fundamental assumptions underlying financial regulation. In India, where financial exclusion still continues despite policy efforts despite decades of policy interventions, the intersection of cryptocurrency technology and constitutional law raises questions of considerable legal and socioeconomic significance. This paper presents a doctrinal and analytical study of the legal frameworks governing cryptocurrency in India, with special focus on their implications for financial inclusion. It traces the evolution of the Reserve Bank of India’s regulatory stance, examines the landmark Supreme Court decision in Internet and Mobile Association of India v. Reserve Bank of India (2020), and interrogates the constitutional tensions between the State’s regulatory authority and the fundamental rights guaranteed under Articles 19(1)(g) and 21 of the Constitution of India. The paper also compares regulatory models adopted by the European Union, El Salvador, the United States, and Singapore, the paper  argues that India’s regulatory trajectory, if calibrated appropriately, could leverage decentralised financial technology to extend access to financial services for its underserved populations. The study concludes by providing specific recommendations for a constitutionally sound and inclusion-sensitive regulatory framework.