Are cryptocurrencies a threat to financial stability and economic growth of India? Evidence from the cointegration approach

• DOI: 10.21511/imfi.20(2).2023.26
• Publication Date: 2023-06-30T12:04:56Z
• Authors: Shrikant Panigrahi
• Keywords: Economic stability

The purpose of this paper is to investigate whether the cryptocurrency market affects financial stability and economic growth India. study used time series quarterly data on bitcoin, stability, inflation rate, real GDP, volatility uncertainty, exchange index for period 2015Q1–2022Q4. robustness findings was confirmed by fully modified OLS (FMOLS) canonical cointegration regression (CCR). results demonstrated that an increase in investments will affect India significantly. Each 1% would reduce 5% approximately. However, there a marginal effect growth. also found rate inflationary pressure deteriorate country. Furthermore, identified positive significant between stability. Due most transactions economy being done through system, it paramount Going forward, aggressive monetary policy tightening, capital flows rates, de-anchoring expectations, faltering recovery, disruptions due global supply chains climate change be major risks