Reserve Bank of India (RBI) Governor Sanjay Malhotra has clearly stated the central bank's focus is on promoting India's Central Bank Digital Currency (CBDC) over private cryptocurrencies. This stance aligns with the government's digital currency strategy and signals continued regulatory challenges for private cryptos in the country.
Governor Malhotra affirmed, "India supports Central Bank Digital Currency (CBDC) over any form of cryptocurrency." This institutional preference is shaping policy and fueling the rapid development and adoption of the digital rupee.
The circulation of the CBDC has seen significant growth, reaching $\text{₹}10.16$ billion as of March 2025. This surge demonstrates a strong institutional inclination towards state-backed digital currency.
RBI Deputy Governor T. Rabi Sankar further highlighted the strategic importance of the CBDC, emphasizing its potential for programmable use cases. Sankar specifically pointed to the "cross-border space" as the basic use case where the CBDC will eventually play a key role.
The government's unwavering support for its own digital currency creates a climate of caution within the crypto community, potentially impacting market interest and adoption rates for private digital assets in India.
October 2025, Cryptoniteuae