At SMS Varanasi, we constantly encourage our Commerce students to keep abreast of the emerging trends in the industry, financial systems, and global trade. If you are pursuing B.Com, B.Com (Hons) or M.Com, cryptocurrency is something you should know about. 

In simple words, ‘cryptocurrency’ is a digital currency. It is secured by cryptography and is used for online transactions. However such digital assets, like Bitcoin, operate outside traditional financial institutions. 

The reason cryptocurrency has been so readily accepted is that it is not controlled by a central authority. Hence, it offers greater security and resistance to censorship. International transactions using it are faster, cheaper, more transparent and easily traceable than traditional money transfers. 

Right now they are available in limited supply. So, they carry higher risks and have the potential to earn higher returns. 

But that’s only one side of the story. The reason governments are so wary of cryptocurrencies is that they are not regulated right now. Their prices can fluctuate dramatically and hacking and scams are highly prevalent in cryptocurrency transactions. 

That’s why its mainstream adoption is fairly limited at present.

There’s one more aspect to consider. Cryptocurrency uses a mining process to validate transactions and create new coins in return for a reward. Crypto mining uses energy-intensive algorithms (especially proof-of-work that requires vast amounts of power), which leads to huge amounts of greenhouse gas emissions and is bad for the environment.

So, does cryptocurrency have a legitimate place in the world economy? Should you look into job prospects for Commerce students in fields related to cryptocurrency? Let’s discuss this in detail.

Understanding the Cryptocurrency Landscape

Cryptocurrency is an emerging field. So, Commerce students who are looking to make a career in this field may come across great opportunities and challenges ahead.

As of February 2024, the market capitalization of the global cryptocurrency market is about $2 trillion – surpassing the GDP of several countries. India has a young and small crypto market but it is booming. At present, its value is around $100 billion. 

Unlike popular opinion, cryptocurrency is not illegal in India yet. The Reserve Bank of India (RBI) did attempt to ban crypto transactions through banks earlier but the Supreme Court overturned this decision in 2020. The government is working on a regulatory framework for it. 

Until then, to deter people from investing in cryptocurrencies, the Indian government introduced a 30% tax on gains from crypto transactions in April 2022, and an additional 1% TDS (Tax Deducted at Source) on crypto purchases in July 2023.

Cryptocurrency uses blockchain technology as a secure & public ledger to record transactions without a central authority. This blockchain technology and cryptocurrencies are being increasingly used in payments, remittances, and decentralized finance (DeFi) in tracking goods, securing logistics, and facilitating cross-border trade.

Many play-to-earn games and NFT transactions use crypto tokens. NFTs (Non-Fungible Tokens) are unique digital assets (art, music, etc.) that are verified on a blockchain and you can sell them (or grant ownership to them) online.

Legality and Prevalence of Cryptocurrency Across the World

Some countries have embraced cryptocurrencies. El Salvador was the first country to adopt Bitcoin as legal tender. Central African Republic adopted it as legal tender in April 2023. Portugal offers attractive tax benefits for crypto holders and businesses. Switzerland is known as ‘Crypto Valley’ for offering a supportive regulatory environment to blockchain startups and crypto companies. UAE is aiming to become a global hub for the industry.

Some are more cautious in their approach. The US is trying to balance innovation in this field with consumer protection and financial stability. India is taxing crypto and restricting its use for payments while working on a regulatory framework for it. European Union has implemented regulations like MiCA (Markets in Crypto Assets) for crypto activities around the bloc. China has banned cryptocurrency trading and mining altogether but it has its own central bank digital currency (CBDC).

And some countries are outright restrictive. Bolivia does not allow payments in cryptocurrencies but does not prohibit its ownership. Bangladesh and Egypt have totally banned trading, holding, and all activities related to cryptocurrencies.

As Commerce students, especially those who want to make careers in this field, you need to stay up-to-date on regulatory changes and regional trends in the cryptocurrency space as they are changing rapidly.

Potential of Cryptocurrency in the World Economy

Cryptocurrency is a relatively new technology and it has a huge potential to impact the world economy. It can help with financial inclusion. It has the potential to provide access to financial services for individuals and communities currently excluded from traditional banking systems. It can also lower transaction costs for cross-border remittances and microtransactions. 

Cryptocurrency can overhaul the global financial systems. It can be a big challenge to central banks and intermediaries by fostering more open and transparent financial systems. It facilitates faster money settlements and it is programmable. It can automate transactions based on predefined conditions, make smart contracts, and offer new financial instruments and efficiencies.

Since cryptocurrencies bypass currency exchange hurdles and intermediaries, they simplify cross-border trade and streamline trade finance processes. It is much easier to track goods and ensure authenticity in the supply chain with blockchain-based solutions.

Decentralized funding means that blockchain and crypto have emerged as major funding sources for innovative projects and startups. They are also being seen as a great but highly volatile investment opportunity. 

With responsible development, regulation, and ongoing innovation, cryptocurrency is going to open many new gates in the world economy in the near future.

Job Prospects for Commerce Students in Fields Related to Cryptocurrency

The cryptocurrency and blockchain space is rapidly evolving. They present many creating exciting opportunities for individuals with diverse skill sets, including commerce students. These include:

1. Financial Services:

• Cryptocurrency Exchanges: You can analyse trends, manage user accounts, and facilitate trading activities.
• Blockchain payment solutions: You can make a career in developing and integrating blockchain-based payment systems for businesses.
• Decentralized finance (DeFi): Commerce graduates can play a valuable role in designing and managing DeFi protocols for lending, borrowing, and other financial services.
• Compliance and regulation: Navigating evolving regulations and advising clients on crypto compliance strategies requires a deep understanding of commercial activities.

2. Marketing and Communication:

• Content creation: You may produce educational content about crypto and blockchain for various audiences. Blogs, vlogs and podcasts related to this field are doing quite well.
• Community management: You can also engage with crypto communities, manage a social media presence, and build brand awareness for a cryptocurrency startup.
• Marketing campaigns: Commerce students can develop and execute marketing campaigns for crypto projects and companies.
• Public relations: You can probably manage reputation and communication strategies for crypto businesses.

3. Technology and Development:

• Blockchain developers: If you are tech-savvy, you can build smart contracts and be a part of developing dApps (decentralized applications) and other blockchain-based solutions.
• Data analysts: Analyzing crypto market data, developing trading strategies, and providing insights to investors require savvy Commerce experts.
• Security specialists: You can take a few more courses to get jobs related to ensuring the security of crypto exchanges, wallets, and blockchain applications.
• User experience (UX) designers: Designing user-friendly interfaces for crypto platforms and applications requires someone with a keen understanding of how business transactions work.

4. Consulting and Advisory:

• Consulting firms: You can apply for jobs where you can advise businesses on integrating blockchain technology into their operations.
• Investment firms: You can analyze crypto markets and advise clients on investment strategies.
• Legal firms: If you know commercial laws, you can provide legal advice and guidance on crypto-related matters.
• Taxation specialists: You can understand the complex tax implications of crypto transactions and advise clients accordingly.

5. Entrepreneurship: 

You might even start your own crypto-related business. You can identify market gaps and develop your own solutions, dApps, or even your own token. For this, you will need a deep understanding of the crypto ecosystem.

Commerce students interested in jobs or businesses related to cryptocurrency are advised to focus on taking additional courses in coding, data analysis, blockchain technology, financial literacy, and communication. They should also network and build connections with professionals in the industry online and offline.

The crypto market is still young and volatile, so be prepared to conduct thorough research in the field and face uncertainties and risks. If you have the zeal to persist in the face of failures and challenges, you will certainly reap great rewards later.

Best of Luck!