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<div class="key-points-section"><b>Key Points:</b>
 <ul>
  <li>RBI emphasizes central bank digital currency over private cryptocurrencies.</li>
  <li>CBDC growing rapidly in India.</li>
  <li>Regulatory focus shifts from decentralized assets.</li>
 </ul>
</div>
<p>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.</p>
<p>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.</p>
<h2 id="rbi-s-strategic-shift-to-cbdc-dominance">RBI's Strategic Shift to CBDC Dominance</h2>
<p>RBI Governor Sanjay Malhotra emphasized the promotion of a <strong><a href="https://coincu.com/news/india-launches-rbi-backed-digital/" rel="noopener noreferrer nofollow">central bank digital currency</a></strong> 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 <a href="https://cbdctracker.hrf.org/currency/india" rel="noopener noreferrer nofollow">policy directions</a>.</p>
<p><strong>CBDC’s development in India is advancing rapidly</strong>, 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.</p>
<p><strong>Key government figures and industry leaders</strong> 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.</p>
<h2 id="india-s-regulatory-paths-supreme-court-to-cbdc-growth">India's Regulatory Paths: Supreme Court to CBDC Growth</h2>
<p style="background-color: #222222; color: #ffffff; padding: 10px; border-radius: 5px;"><strong>Did you know?</strong> India's 2020 Supreme Court decision overturned a ban on crypto exchange banking, showcasing a cautious regulatory environment evolving alongside rising <strong><a href="https://coincu.com/analysis/rootdatas-report-crypto-financing-trends/" rel="noopener noreferrer nofollow">CBDC initiatives</a></strong>.</p>
<p>As per <a href="https://twitter.com/realcoingeek" rel="noopener noreferrer nofollow">CoinMarketCap data</a>, 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.</p>
<figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2025/10/Bitcoin-daily-chart-on-0455-UTC-on-October-16-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/10/Bitcoin-daily-chart-on-0455-UTC-on-October-16-2025file.jpeg" alt="bitcoin-daily-chart-3764"> </a>
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  Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 04:55 UTC on October 16, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a></em>
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<p><strong>Coincu research indicates that</strong> the regulatory focus on CBDC may slow down decentralized finance growth in India. With the government <strong><a href="https://coincu.com/markets/morgan-stanley-crypto-advisory/" rel="noopener noreferrer nofollow">prioritizing CBDC mechanisms</a></strong>, private crypto platforms face challenges in <strong>navigating</strong> the shifting landscape.</p>
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    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
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</figure> <a href="https://coincu.com/uncategorized/india-cbdc-over-crypto-focus/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

India Advances CBDC Over Cryptocurrencies Amid Regulatory Focus

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