Economic & BusinessMedium DifficultyTrending 2025

Is cryptocurrency a threat or opportunity for India?

Asked by: IIM Calcutta, IIM Kozhikode (2024)

Quick Answer

WAT Topic: "Is cryptocurrency a threat or opportunity for India?" - economic category, medium difficulty. Consider 2 perspectives for a balanced essay.

Both Perspectives

Opportunity

  • 1Web3 and blockchain innovation leadership potential
  • 2Remittance cost reduction for diaspora
  • 3Financial inclusion for unbanked populations
  • 4Investment diversification and wealth creation

Threat

  • 1Monetary policy control undermined
  • 2Money laundering and terror financing risks
  • 3Speculative bubbles harming retail investors
  • 4Environmental concerns from mining

Sample Essay Structure

Introduction

Reference India's 30% crypto tax as context. Position: regulate, don't ban.

Body Paragraphs

1

Para 1: Legitimate use cases (blockchain, DeFi)

2

Para 2: Valid regulatory concerns with examples

3

Para 3: Middle path — CBDC (Digital Rupee) + regulated crypto

Conclusion

Advocate for innovation-friendly regulation over prohibition.

Key Statistics to Use

📊

100+ million crypto users in India (estimated)

📊

30% tax on crypto gains + 1% TDS since 2022

📊

RBI Digital Rupee pilot launched December 2022

Common Mistakes

Conflating crypto with blockchain technology

Not mentioning Digital Rupee (CBDC)

Taking extreme pro or anti position without nuance

Pro Tip

Know the difference between crypto, blockchain, DeFi, and CBDC. Show you understand the technology.

Writing Framework (Applies to All WAT)

Aristotle

Rhetoric (4th Century BC)

Insight: Persuasion requires ethos (credibility), pathos (emotion), and logos (logic) working together.

How to apply: Structure your WAT with logical arguments (logos), establish credibility through data/examples (ethos), and connect to human impact (pathos). IIM evaluators look for all three.

Chip & Dan Heath

Made to Stick (2007)

Insight: Ideas that stick are Simple, Unexpected, Concrete, Credible, Emotional, and tell Stories (SUCCESs).

How to apply: Open with an unexpected fact or angle. Use concrete examples, not abstractions. Ground arguments in credible data. Make it memorable.

Steven Pinker

The Sense of Style (2014)

Insight: Good writing is about showing the reader something in the world, not performing your knowledge.

How to apply: Don't write to impress—write to illuminate. Avoid jargon and pompous language. Show you understand the issue, don't just list points.

George Orwell

Politics and the English Language (1946)

Insight: Clear thinking leads to clear writing. Never use a long word where a short one will do.

How to apply: Prefer active voice. Cut unnecessary words. If you can cut a word, cut it. Clarity beats complexity in 200-word essays.

School-Specific WAT Styles

IIM Ahmedabad

Values original thinking and nuanced positions over conventional wisdom.

Tip: IIMA loves contrarian but well-reasoned takes. Don't be afraid to challenge the premise of the topic itself.

IIM Bangalore

Practical, business-oriented evaluation. Values structured thinking.

Tip: IIMB appreciates when you connect topics to business/management implications. Always include "so what" for managers.

IIM Calcutta

Rigorous analytical approach. Values data and economic reasoning.

Tip: IIMC loves numbers. Include at least one relevant statistic. Show you understand economic trade-offs.

IIM Lucknow

Balanced evaluation of content and expression.

Tip: IIML values clear structure. Use explicit transitions and signposting.

XLRI Jamshedpur

Ethics-focused, values human-centric perspectives.

Tip: XLRI's Jesuit heritage means they value ethical dimensions. Always consider the human/social impact angle.

Frequently Asked Questions

What stance should I take on "Is cryptocurrency a threat or opportunity for India?"?

There's no "right" stance. What matters is taking a clear position and defending it well. Know the difference between crypto, blockchain, DeFi, and CBDC. Show you understand the technology.

Which IIMs have asked about Is cryptocurrency a threat or opportunity for India??

This topic has been asked by: IIM Calcutta, IIM Kozhikode (most recently in 2024).

How do I structure my WAT on this topic?

Reference India's 30% crypto tax as context. Position: regulate, don't ban. Your body should cover: Para 1: Legitimate use cases (blockchain, DeFi); Para 2: Valid regulatory concerns with examples; Para 3: Middle path — CBDC (Digital Rupee) + regulated crypto.

Related WAT Topics

Key Takeaways

  • 1Introduction: Reference India's 30% crypto tax as context. Position: regulate, don't ban.
  • 2Key argument: Para 1: Legitimate use cases (blockchain, DeFi)
  • 3100+ million crypto users in India (estimated)
  • 430% tax on crypto gains + 1% TDS since 2022
  • 5Pro tip: Know the difference between crypto, blockchain, DeFi, and CBDC. Show you understand the technology.

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