The Disruption by Digital Currencies: How and Why should they be Regulated

The paper deals with the advent of digital currencies, and the disruption of the global markets due to the increasing innovation through Central Banking Digital Currencies and Stablecoins. Thus, the paper is aimed at tracing the trajectory of the evolution of such digital currencies, especially focussing on the regulatory aspect, in the US and European counterparts. The paper, using doctrinal methodology, examines concepts of accountability, funds transfer and legislations like the Uniform Commercial Code and the EU Directives to enquire into the applicability of the current legislations in the context of digital currencies. The paper concludes by providing critiques and suggestions for the Indian counterpart, emphasising on the aspect of self-regulation and industry standards.