The US allows the listing of cryptocurrencies as an asset class on exchanges. Though other countries too have done this, it is a welcome step coming from the world’s largest economy. S & P Dow Jones Indices will launch a cryptocurrency index in 2021, in association with virtual currency data solution company, Lukka.

Cryptocurrencies have yet to find common acceptance, but as they do more investment in them as an asset class, things may change. The government may respond by bringing suitable regulation. It will bring certainty to the cryptocurrency eco-system.

As investment is drawn to cryptocurrency, there is going to be more stimulation to investment in blockchain technology, leading to innovations in other areas.

India is skeptical to cryptocurrencies. She can take cues by regulations implemented by other countries. Some of the cryptocurrencies are not as volatile as Bitcoin. They are pegged to other commodities such as gold or gasoline. Even bitcoins are not as volatile as they were previously. India needs to treat cryptocurrencies with lesser skepticism.