If this happens, paytm Will support it first. And as soon as it's supported by Paytm, everyone else's payment gateway will start supporting it. If possible, Indian government will also have to accept it in Fees of different government works like in Post offices, for e-challans etc.. I'm sure people will put pressure on government. Reading such news shows that we are moving in the right direction. People probably won't understand bitcoin like a ballon and the rate of bitcoin won't go down too much like 2018.
That's far from happening. Government is already against considering cryptocurrencies as a legal tender for now. So I don't think that even if cryptocurrencies are regulated in India, the government will start using them for payments any time soon. This might be a possibility but not right now. Cryptocurrencies still have a long road ahead in India. In order for it to be accepted as a payment method, it will first have to be regulated but the government is still unsure of how to proceed with the regulation of cryptocurrencies in India.
