A STUDY ON THE DIGITAL CURRENCIES AND COMMERCIAL TRANSACTIONS : LEGAL IMPLICATIONS

The rapid growth of digital currencies has transformed the landscape of commercial
transactions across the world. Cryptocurrencies such as Bitcoin, Ethereum, and Central Bank
Digital Currencies (CBDCs) have introduced a new form of exchange that operates beyond
traditional banking systems. These developments challenge existing legal frameworks
relating to contract law, taxation, consumer protection, anti–money laundering regulations,
and financial security.In India, the legal status of digital currencies remains uncertain despite
various regulatory interventions by the Reserve Bank of India, the Ministry of Finance, and
judicial pronouncements including Internet and Mobile Association of India v. RBI (2020).
The absence of comprehensive legislation has created ambiguity for businesses and
consumers engaging in digital currency transactions.This study seeks to examine the legal
implications of digital currencies on commercial transactions with special reference to Indian
law. It will analyze whether existing legal principles governing contracts, payments, and
financial regulation are adequate to address the unique characteristics of digital currencies
such as decentralization, anonymity, and cross-border nature.