The new digital currency in India will be a state-controlled balance to the non-centralized crypto assets. It will provide speed and regulatory control over its integration with existing payment systems. The government should promote transparency in financial matters, increase the effectiveness of cross-border payments, and decrease reliance on physical cash.
Meanwhile, India continues to proceed carefully on broader . According to a Reuters report, a recent government document reveals that India has resisted creating a comprehensive cryptocurrency framework due to concerns about systemic risk. The Reserve Bank of India maintains that unregulated digital assets could destabilize monetary policy and financial stability.
India already has some experience in the operation of its digital rupee pilot, e-rupee. The project, introduced in 2022, has been tested in both wholesale (e₹-W) and retail (e₹-R) forms. Initial experiments were encouraging, but they were followed by a decline in usage as incentives were removed, highlighting the challenge of organically promoting central bank digital currencies (CBDCs).