Digital asset linked to the rupee to launch in India next year…"Complement to CBDC"

A digital asset pegged 1-to-1 to the rupee is set to be launched in India as early as the first quarter of next year.

According to CoinDesk on the 20th (local time), Indian fintech firm Anq said it plans to launch the digital asset 'ARC' next year in the first quarter, which it jointly developed with Ethereum (ETH) scaling solution Polygon (POL). ARC is a type of stablecoin whose value is pegged 1-to-1 to India’s legal tender, the rupee. CoinDesk reported, "The issuer can only issue ARC if it has secured cash, government bonds, time deposits, etc.," and added, "ARC is designed to prevent capital outflows to dollar-based stablecoins and to keep liquidity within the Indian economy."

ARC appears set to operate as a complement to the central bank digital currency (CBDC) issued by the Reserve Bank of India (RBI). CoinDesk said, "(ARC) will function as a privately developed interaction layer that complements the RBI's CBDC," and added, "The CBDC maintains (India's) monetary sovereignty and security, while the private sector develops payment innovations, remittance systems, etc., within a regulatory framework."