1 August 2026
India May Have Digital Version of Fiat Currency
Back in March 2020, the Indian supreme court overturned the Reserve Bank of India’s ban on crypto businesses and it leads to banks becoming bullish over digital assets.
RBI released a booklet on payments, stating that the bank is “exploring the possibility as to whether there is a need for a digital version of fiat currency.” The bank further commented that if it found a need, it would look into ways to put digital currency into use.
Reserve Bank of India admits to the growing popularity of cryptocurrencies around the world but claimed that Indian regulators and local government bodies are both “skeptical” of and “apprehensive” about them. The bank referred to central bank digital currencies as legal tender in the country but also called them “a central bank liability in digital form.”
The relationship between the Indian government and cryptocurrencies is complicated. The ban which RBI had put on cryptocurrencies in April 2018 was overturned by the Supreme court of India in March 2020. The number of exchanges has grown in response to the supreme court ruling, but many in the crypto space have expressed their concerns over the future of the industry in the nation.
The RBI step of developing a digital currency could lead to easier adoption of cryptocurrency in India. As per the RBI report, there has been an “exponential growth of digital payments” in the country with a 12.5% and 43% increase in volume and value, respectively, since 2011. The bank added that it may expand adoption by targeting “the generation which is most responsive to technology and digital age” — people born between 1982 and 2004.
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