Latest news with #DigitalRupee
Economic Times
3 days ago
- Business
- Economic Times
Digital Rupee vs Crypto: What the debate misses about the future of money
When the debate gets wrong The Digital Rupee is a sovereign, state-backed currency that retains all the regulatory control of fiat, with some of the benefits of digital settlement—speed, transparency, and auditabilit. Crypto, especially stablecoins and DeFi protocols, represents open, global finance—designed to reduce reliance on intermediaries, enable 24/7 global settlement, and allow innovation at the edges. Live Events Whether it's a CBDC or a stablecoin, the average Indian citizen wants: Instant settlement Low transaction fees Universal acceptance Interoperability across borders Clear privacy and control over their funds Google Pay PhonePe (majority owned by Walmart) Paytm (with large foreign ownership) India needs a strategic payments agenda To avoid this, India must learn from UPI's journey: Create favorable policies and early access for Indian startups to build on top of the Digital Rupee. Ensure neutral interoperability layers so no single app dominates wallet access or merchant onboarding. Offer incentives and sandboxes for fintechs and Web3 startups to create novel CBDC use cases in sectors like trade, MSME finance, insurance, and mobility. Consider public-private models where infrastructure remains open but innovation is encouraged locally. It's not Crypto vs CBDC. It's about empowering Indians A Digital Rupee that settles instantly, works offline, and integrates with UPI? Excellent. A crypto wallet that lets an Indian freelancer receive USD-stablecoins from a US client and cash out into INR at low cost? Also excellent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India is in the midst of a silent revolution in money. On one hand, we have the Digital Rupee , the Reserve Bank of India 's Central Bank Digital Currency (CBDC), and on the other, the rapidly growing world of crypto-assets and stablecoins operating on public are vying to redefine how value is transferred in the digital age. And yet, the ongoing debate—often framed as CBDC vs Crypto—misses the point entirely. Because the real question is not about which technology wins, but who benefits from discourse often pits the Digital Rupee and crypto against each other—as if they are fundamentally incompatible. The truth is, both are programmable forms of digital money, designed for different purposes, but potentially coexisting in the same future financial focusing only on the instruments is missing the forest for the trees. What matters most is the end user's the user, convenience is kingIf the Digital Rupee delivers this, it wins. If crypto and stablecoins can do it better, they will continue gaining ground—especially among tech-savvy users, freelancers, SMEs, and far, Digital Rupee usage is modest—with just 19 banks live and around 100,000 daily transactions reported in mid-2024. By comparison, UPI clocks 350 million+ transactions a day, and stablecoins globally settled over $7 trillion in bigger problem: Not who builds it, but who controls itLet's zoom out. India built UPI—arguably the most successful public payments infrastructure in the world. But despite being a product of NPCI (a quasi-government entity), UPI adoption is now dominated by three major apps:Together, these three control over 94% of UPI transaction while UPI is Indian in origin, the monetization, data leverage, and platform control rests in the hands of foreign-backed companies. Indian startups in the payments space face high entry barriers, and the market has become increasingly difficult to penetrate due to high compliance, capital, and branding India repeats the same model with the Digital Rupee—where state infrastructure is handed over to foreign-led platforms for distribution—we will be building Indian rails for global profits, all, payments aren't just a technical tool—they are an instrument of economic sovereignty . And whoever controls the interface to money, controls much more than just the end of the day, the user doesn't care whether their money comes from a central bank node or a smart contract. They care about speed, cost, and key is not to fixate on the rails, but to ensure that the value stays in India, and Indian entrepreneurs are not locked out of building the future. Because if we don't, we risk creating another UPI story—built by India, but controlled by others. And that's a mistake we can't afford to make twice.(The author, Aishwary Gupta is the Global Head of Payments & Real World Assets at Polygon Labs): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
4 days ago
- Business
- Time of India
Digital Rupee vs Crypto: What the debate misses about the future of money
India is in the midst of a silent revolution in money. On one hand, we have the Digital Rupee , the Reserve Bank of India 's Central Bank Digital Currency (CBDC), and on the other, the rapidly growing world of crypto-assets and stablecoins operating on public blockchains. Both are vying to redefine how value is transferred in the digital age. And yet, the ongoing debate—often framed as CBDC vs Crypto—misses the point entirely. Because the real question is not about which technology wins, but who benefits from it. When the debate gets wrong Public discourse often pits the Digital Rupee and crypto against each other—as if they are fundamentally incompatible. The truth is, both are programmable forms of digital money, designed for different purposes, but potentially coexisting in the same future financial system. Crypto Tracker TOP COIN SETS BTC 50 :: ETH 50 -3.77% Buy Smart Contract Tracker -5.49% Buy DeFi Tracker -10.48% Buy Web3 Tracker -10.95% Buy NFT & Metaverse Tracker -12.38% Buy TOP COINS (₹) XRP 193 ( 2.6% ) Buy BNB 56,658 ( 0.59% ) Buy Bitcoin 9,215,509 ( 0.39% ) Buy Ethereum 222,362 ( -1.14% ) Buy Solana 13,227 ( -1.93% ) Buy The Digital Rupee is a sovereign, state-backed currency that retains all the regulatory control of fiat, with some of the benefits of digital settlement—speed, transparency, and auditabilit. Crypto, especially stablecoins and DeFi protocols, represents open, global finance—designed to reduce reliance on intermediaries, enable 24/7 global settlement, and allow innovation at the edges. Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » But focusing only on the instruments is missing the forest for the trees. What matters most is the end user's experience. Live Events For the user, convenience is king Whether it's a CBDC or a stablecoin, the average Indian citizen wants: Instant settlement Low transaction fees Universal acceptance Interoperability across borders Clear privacy and control over their funds If the Digital Rupee delivers this, it wins. If crypto and stablecoins can do it better, they will continue gaining ground—especially among tech-savvy users, freelancers, SMEs, and NRIs. So far, Digital Rupee usage is modest—with just 19 banks live and around 100,000 daily transactions reported in mid-2024. By comparison, UPI clocks 350 million+ transactions a day, and stablecoins globally settled over $7 trillion in 2023. The bigger problem: Not who builds it, but who controls it Let's zoom out. India built UPI—arguably the most successful public payments infrastructure in the world. But despite being a product of NPCI (a quasi-government entity), UPI adoption is now dominated by three major apps: Google Pay PhonePe (majority owned by Walmart) Paytm (with large foreign ownership) Together, these three control over 94% of UPI transaction volume. So while UPI is Indian in origin, the monetization, data leverage, and platform control rests in the hands of foreign-backed companies. Indian startups in the payments space face high entry barriers, and the market has become increasingly difficult to penetrate due to high compliance, capital, and branding costs. If India repeats the same model with the Digital Rupee—where state infrastructure is handed over to foreign-led platforms for distribution—we will be building Indian rails for global profits, again. India needs a strategic payments agenda To avoid this, India must learn from UPI's journey: Create favorable policies and early access for Indian startups to build on top of the Digital Rupee. Ensure neutral interoperability layers so no single app dominates wallet access or merchant onboarding. Offer incentives and sandboxes for fintechs and Web3 startups to create novel CBDC use cases in sectors like trade, MSME finance, insurance, and mobility. Consider public-private models where infrastructure remains open but innovation is encouraged locally. After all, payments aren't just a technical tool—they are an instrument of economic sovereignty . And whoever controls the interface to money, controls much more than just transactions. It's not Crypto vs CBDC. It's about empowering Indians At the end of the day, the user doesn't care whether their money comes from a central bank node or a smart contract. They care about speed, cost, and usability. A Digital Rupee that settles instantly, works offline, and integrates with UPI? Excellent. A crypto wallet that lets an Indian freelancer receive USD-stablecoins from a US client and cash out into INR at low cost? Also excellent. The key is not to fixate on the rails, but to ensure that the value stays in India, and Indian entrepreneurs are not locked out of building the future. Because if we don't, we risk creating another UPI story—built by India, but controlled by others. And that's a mistake we can't afford to make twice. (The author, Aishwary Gupta is the Global Head of Payments & Real World Assets at Polygon Labs) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
10-06-2025
- Business
- Time of India
The e-rupee is really taking off — and growing faster than UPI or crypto
The e-rupee is really taking off — and growing faster than UPI or crypto RBI's Digital Rupee is still in its pilot phase, but already looks like a big hit. TOI explains what this currency is all about
Time Business News
29-05-2025
- Business
- Time Business News
Is Crypto Trading Legal in India? Expert Opinion by Adv. Siby Varghese – Founder of Shield Law Firm
If you've ever wondered whether crypto trading is legal in India, here's the answer directly from Adv. Siby Varghese, a renowned cybercrime lawyer and founder of Shield Law Firm. Yes, crypto trading is legally permitted in India, but it is not recognized as legal tender. In simple words, you can buy and sell cryptocurrencies like Bitcoin, but you can't use them to make everyday purchases like you would with the Indian Rupee. Adv. Siby Varghese, a top cyber law expert and crypto lawyer, explains that cryptocurrency trading is allowed in India, but it is tightly regulated. After the RBI ban in 2018, the Supreme Court of India overturned the ban in 2020, giving Indians the right to trade in digital assets under Article 19(1)(g) of the Constitution (freedom to trade or conduct business). However, this does not mean crypto is unregulated. Here's what you must know: Crypto is not banned , but it is not legal tender . , but it is . There is a 30% tax on crypto profits and 1% TDS on every transaction . and . The government is yet to pass a comprehensive crypto bill , though discussions are ongoing. , though discussions are ongoing. The RBI is promoting the Digital Rupee (e₹), a central bank digital currency (CBDC), as a regulated alternative to private cryptocurrencies. RBI Ban (2018): Banks were barred from dealing with crypto-related businesses. Banks were barred from dealing with crypto-related businesses. Supreme Court Judgment (2020): The ban was struck down, restoring the legality of crypto trading. The ban was struck down, restoring the legality of crypto trading. Tax Rules (2022-2023): A flat 30% tax and 1% TDS were introduced to regulate profits and trace transactions. According to Siby Varghese of Shield Law Firm, as crypto becomes popular, scams are rising. Understanding how these frauds work can help you stay safe. These scams promise high returns by using new investors' money to pay old ones. They collapse when fresh investments stop. Fraudsters artificially inflate prices of low-value tokens, then sell off their holdings, leaving investors in losses. Example: Bitconnect (2017). Scammers impersonate crypto influencers on Telegram, Twitter, or Discord, offering giveaways or fake investments. Adv. Siby Varghese also warns about crypto influencers who misuse their social media presence to scam followers. Here are the tactics they use: Fake Luxury Lifestyle: Renting luxury cars, showing off vacations to create false success stories. Renting luxury cars, showing off vacations to create false success stories. Scam Coins: Promoting coins they secretly hold, pumping the price, and dumping it after followers buy in. Promoting coins they secretly hold, pumping the price, and dumping it after followers buy in. Overpriced Courses: Selling generic content for high prices with promises of secret strategies. Selling generic content for high prices with promises of secret strategies. Fake Testimonials: Using bots or AI-generated reviews. Using bots or AI-generated reviews. Edited Profit Screenshots: Posting fake earnings to gain trust. Do Your Research: Always verify the legitimacy of the exchange or token. Use Secure Wallets: Protect your crypto with hardware wallets and two-factor authentication. Avoid Guaranteed Profits: If it sounds too good to be true, it probably is. Stick to Trusted Exchanges: Use well-known, regulated crypto platforms. Watch for Fake URLs: Check spelling in website links, especially from social media or emails. If you are a victim of crypto trading fraud, it's important to act quickly. You have legal rights under Indian cyber law. Adv. Siby Varghese, a leading cybercrime lawyer in India, and his team at Shield Law Firm specialize in: Legal action for cyber crimes Recovery from forex or crypto scams Filing complaints under IT Act and IPC Guidance on what to do after cyber crime against me Call: +91 8884999803 Visit: Advocate Siby Varghese Cybercrime Lawyer Crypto Law Expert Co-Founder, Shield Law Firm Co-Founder, Vakeel at Home app Crypto trading in India is legal but regulated. Avoid unauthorized platforms, don't fall for social media hype, and protect your assets with the right legal knowledge. If you've been scammed, don't panic—legal help is available. TIME BUSINESS NEWS
Khaleej Times
27-01-2025
- Business
- Khaleej Times
Navigating Indian Banking Landscape Towards 2025
The Indian banking sector has been a cornerstone of economic growth, demonstrating resilience and adaptability amid technological evolution and regulatory changes. As we look towards 2025, this sector is poised for transformative shifts that promise to redefine banking norms. The sector is predominantly characterised by a mix of public and private sector banks, with public sector banks holding the majority of assets. However, the dynamic growth of private banks, driven by technology and customer-centric innovations, has started to shift this balance. India's economy is projected to maintain its robust growth momentum, with the International Monetary Fund (IMF) forecasting a 6.3 per cent growth in financial year 2024-25. This expansion translates into a healthy demand for credit, both from businesses seeking to invest and individuals seeking loans for consumption. 'The Indian banking sector is undergoing a transformative phase, driven by robust economic growth, digitalisation, and regulatory reforms. Public and private sector banks are embracing advanced technologies like AI and blockchain to enhance efficiency and customer experience. With a focus on financial inclusion, initiatives like Jan Dhan Yojana and UPI are fostering deeper penetration into rural markets,' said Krishnan Ramachandran, CEO of Barjeel Geojit Financial Services LLC. However, challenges such as rising NPAs, cybersecurity threats, and evolving global economic dynamics remain. 'As we look toward 2025, the sector is poised for consolidation and innovation, with fintech collaborations redefining traditional banking. The focus will be on resilience, sustainable growth, and aligning with India's $5 trillion economy vision,' added Ramachandran. The latest reports from the Reserve Bank of India indicate that the total banking assets have seen a robust year-on-year growth of 15 per cent. Last quarter, banks experienced a 4.2 per cent increase in assets, primarily driven by a 6 per cent growth in retail lending. Digital transactions also saw significant growth, with the Unified Payments Interface (UPI) handling over 6.5 billion transactions during the period. The rollout of the Digital Rupee signifies a major step towards an advanced digital economy. Additionally, credit disbursement was up by eight per cent, with a notable rise in MSME lending, encouraged by government incentives. The non-performing assets (NPA) ratio showed improvement, decreasing from 6.1 per cent to 5.8 per cent, thanks to more effective recovery processes and the impact of the Insolvency and Bankruptcy Code. The banking sector maintained a strong Capital Adequacy Ratio at 15.5 per cent, ensuring a robust buffer against potential financial shocks. Moreover, banks reported a 20 per cent increase in net profits quarter-on-quarter, fuelled by higher interest income and increased cost efficiency resulting from digital initiatives. Dr Nilay Ranjan Singh, CEO at SBI, DIFC, said: 'Indian banking sector has always considered the technology as one of the important factor to serve the customer. Implementation of core banking across all the major banks is a testimony of that which not only helped the customers but the banks also in improving services and bringing efficiency as well as cost effectiveness. UPI, NACH and other digital initiatives have been game changer. You Only Need One (YONO), the flagship digital platform of SBI brings the lifestyle and banking at one place which has more than 75 million active users and presence across 13 countries.' Despite these positive trends, challenges such as NPAs, cyber threats, and compliance risks persist. In response, the RBI has enhanced the Prompt Corrective Action framework and tightened digital lending norms to secure financial stability and consumer protection. Cybersecurity: A growing concern Banks are investing heavily in strengthening their cybersecurity infrastructure and implementing robust risk management frameworks. The RBI has also issued guidelines to banks on cybersecurity preparedness and resilience. Technological integration is a major theme, with AI and blockchain being leveraged for risk management, fraud prevention, and transaction security. Fintech partnerships are flourishing, enabling traditional banks to streamline operations and enhance user experiences. The cybersecurity outlook for the Indian banking sector in 2025 is focused heavily on managing escalating risks due to increased digitalisation and evolving cyber threats. Key trends include the integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to bolster fraud detection and enhance operational efficiencies. However, the Reserve Bank of India (RBI) cautions against potential financial stability risks associated with these technologies, emphasising the need for robust IT governance and effective risk management frameworks. The country's cybersecurity measures are being tested by a massive increase in malware detections, highlighting the need for urgent reforms to safeguard against these evolving threats. The banking sector, in particular, is a prime target due to the vast amounts of sensitive financial data handled daily. To combat these challenges, there's an ongoing push for enhanced cybersecurity protocols and tighter regulatory measures. Banks are encouraged to adopt more sophisticated cybersecurity tools that use behavior tracking and AI to detect threats early. Additionally, there's a significant focus on educating employees and customers about cybersecurity best practices to mitigate the risk of breaches starting from human errors. Digitisation and financial inclusion The banking sector is expected to maintain its growth trajectory through 2025, supported by strong economic fundamentals and proactive regulatory frameworks. The focus will likely remain on digitisation and financial inclusion. "In 2025, India's banking sector stands at the cusp of a revolutionary transformation, driven by technological innovations and digital integration. With AI-powered digital lending, predictive analytics, and hyper-personalized services, banks are embracing a future where technology meets customer-centric solutions. The focus on sustainability through green financing and rigorous climate risk management reflects a commitment to responsible banking. Amidst this evolution, the growing collaboration between India and the UAE promises a fertile ground for cross-border digital financial innovations, leveraging a robust environment fuelled by India's 6.5 per cent GDP growth and macroeconomic stability," said Karthik Raman, Convener IBPC Dubai & Global & Chief Revenue Officer RevDau Technologies. The Indian banking sector is set to undergo significant transformations that will not only enhance service delivery but also contribute to the broader economic landscape. With a strong regulatory framework, commitment to technological integration, and a focus on customer-centric solutions, the future of Indian banking looks promising.
