India's first bitcoin conference is taking place this Sunday, and the domestic ecosystem surrounding the volatile virtual/digital currency is finally all set to take-off.

U. S.-based Buttercoin is said to be among the three different companies that are pursuing discussions with some Indian banks and financial institutions to create a domestic exchange to allow the purchase and sale of bitcoins.

However, any such initiative will require several approvals, a `no-objection' certificate and co-operation from the Reserve Bank of India (RBI).

Speaking on the topic, a senior bank official said, "There is little doubt that India is waking up to bitcoin. The number of queries we are getting regarding the virtual currency has increased exponentially in the last three months."

While many analysts have been recommending for the implementation and use of bitcoins, governments and central banks around the globe are concerned over the high vitality of the virtual currency.

Bitcoin, which was worth almost zero until April 2011, is now trading at nearly $1,000.

France's central bank rejected it saying it is "highly speculative," while China prevented its banks from offering services related to bitcoin, saying it shouldn't be circulated and used as it doesn't possess the same legal status as currency.