India's Shift to Central Bank Digital Currency
- •RBI emphasizes central bank digital currency over private cryptocurrencies.
- •CBDC growing rapidly in India.
- •Regulatory focus shifts from decentralized assets.
Governor Sanjay Malhotra of the Reserve Bank of India announced a focus on promoting central bank digital currency over cryptocurrencies, aligning with India's digital currency strategy.
The RBI's preference for central bank digital currency underscores regulatory challenges for private cryptos in India, potentially impacting market interest and adoption rates in the region.
RBI's Strategic Shift to CBDC Dominance
RBI Governor Sanjay Malhotra emphasized the promotion of a central bank digital currency in India over private cryptocurrencies. This aligns with global trends, as other nations explore similar avenues. According to Malhotra, "India supports Central Bank Digital Currency (CBDC) over any form of cryptocurrency.” This government stance continues to shape policy directions.
CBDC’s development in India is advancing rapidly, with significant growth in circulation. As of March 2025, CBDC’s circulation reached ₹10.16 billion, representing a noteworthy increase from previous figures. This highlights an institutional inclination towards digital currencies backed by the state.
Key government figures and industry leaders have echoed the importance of CBDC over private digital currencies. Statements by Deputy Governor T. Rabi Sankar further underscore this shift, emphasizing programmable use cases. Sankar described “the basic use case for CBDC eventually comes in the cross-border space” and highlighted programmable features for broader adoption. The crypto community exhibits caution amidst these regulatory developments.
India's Regulatory Paths: Supreme Court to CBDC Growth
Did you know? India's 2020 Supreme Court decision overturned a ban on crypto exchange banking, showcasing a cautious regulatory environment evolving alongside rising CBDC initiatives.
As per CoinMarketCap data, Bitcoin (BTC) currently trades at $111,096.32 with a market cap of $2.21 trillion. Its market dominance stands at 58.82%, despite a 1.18% decrease in price over the past 24 hours. BTC's circulating supply amounts to 19,934,406, with a maximum supply capped at 21 million.
Coincu research indicates that the regulatory focus on CBDC may slow down decentralized finance growth in India. With the government prioritizing CBDC mechanisms, private crypto platforms face challenges in navigating the shifting landscape.