Reserve Bank of India to roll out new use cases for digital rupee
The Reserve Bank of India (RBI) is set to broaden the reach of its digital rupee pilots by introducing new use cases and features for both its retail and wholesale central bank digital currencies (CBDCs), according to the central bank’s Annual Report for 2024–25.
The central bank said it aims to explore programmability and offline capabilities for the digital rupee, features that may increase its applicability in areas with limited internet access and tailor payments for specific use cases such as government subsidies or corporate spending controls.
Currently, both versions of the CBDC are undergoing pilot testing. The retail CBDC pilot is being conducted with select customers and merchants through participating banks, while the wholesale pilot is targeting use in the interbank market.
Per the report, the retail pilot has reached 600,000 users across 17 banks. To further scale adoption, the RBI has allowed “certain non-banks […] to offer CBDC wallets.”
The wholesale pilot has also seen increased institutional interest. The scope of the wholesale was further expanded and diversified with the addition of four standalone primary dealers (SPDs), the report confirmed.
Related: Indian high court orders steps to block Proton Mail
India dominates real-time payments
During the financial year 2024–25, digital payments in India experienced significant growth, both in terms of volume and value. According to the report, total digital payments recorded a growth of 34.8% in volume and 17.9% in value.
Furthermore, India dominated global real-time payments during the year. The RBI noted that the Unified Payments Interface (UPI) “placed India in a leadership position with a share of 48.5 percent in global real-time payments by volume.”
The central bank said several innovative features were introduced to extend the benefits of digital payments to wider segments of society.
For instance, the report mentions that the “Delegated Payments” feature was rolled out, allowing “individuals (primary user) to allow another individual (secondary user) to make UPI transactions up to a limit from the primary user’s bank account.”
Related: Indian town adopts Avalanche blockchain for tamper-proof land records
India’s Supreme Court calls for crypto regulation
On May 20, India’s Supreme Court raised concerns over the government’s inaction in regulating cryptocurrencies like Bitcoin, despite already imposing a 30% tax on them.
Justice Surya Kant criticized the existence of a “parallel economy” through digital assets, calling it a potential threat to the nation’s financial system.
In India, users pay a 30% tax on profits from crypto trading, which has been in effect since April 2022.
Though crypto firms operating in the country endure increasing regulatory oversight, India is estimated to have more than 100 million digital asset holders out of its 1.4 billion people.
Magazine: Move to Portugal to become a crypto digital nomad — Everybody else is
A group of Senate Democrats has probed Federal Housing Finance Agency director William Pulte over his order to propose how to consider crypto in mortgage applications.
Politics
Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza
Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.
Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.
Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.
Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.
Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.
The approach seemed to pay off in May when Mr Trump announced the agreement of a trade deal with the UK that would see several tariffs lowered.
The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.
Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.
Extracting promises from the president on the Middle East may be harder though.
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Should aid be dropped into Gaza?
Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.
As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.
On Thursday, French President Emmanuel Macron announced his country would formally recognise a Palestinian state in September, the first member of the G7 to do so.
That move was dismissed by Mr Trump, who said it “doesn’t carry any weight”.
Read more from Sky News:
US and EU agree trade deal – with bloc facing 15% tariffs
Geldof accuses Israel of ‘lying’ about Gaza starvation
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Trump: ‘It doesn’t matter what Macron says’
The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.
Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.
On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.
Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.
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Baby Zainab starved to death in Gaza
Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.
The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.
President Trump’s trip to Scotland comes ahead of his second state visit to the UK in September.
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Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.
After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.
Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.
The US housing regulator’s decision to recognize crypto assets in mortgage applications marks a historic shift from exclusion to integration, opening new pathways to homeownership.
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