India launches digital asset: Arc aims to strengthen rupee!

India launches digital asset: Arc aims to strengthen rupee!

India is on the verge of a major breakthrough in the digital assets space. The launch of a rupee-backed digital asset, known as Arc, is planned for 2026. This initiative is being implemented in collaboration with blockchain developer Polygon and fintech company Anq to promote liquidity within India and counter US dollar stablecoins.

The Arc is fully backed by Indian Government Securities (G-Secs) and Treasury Bills. The system's dual architecture consists of two key components: Tier 1, which leverages the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC) for settlements, and Tier 2, which provides the Arc for programmable payments.

Restrictions on Use

An important aspect of the Arc initiative is the restriction of use. Only corporate accounts are allowed to generate new tokens, while individuals are excluded. This measure aims to ensure compliance with Indian foreign exchange regulations and prevent speculative activities at the consumer level.

The launch of the Arc demonstrates the Indian government's intention to strengthen control over capital flows and increase liquidity in the financial system. One of the main objectives is to counter the trend of Indian capital flowing into USD-denominated stablecoins, which could potentially weaken the rupee's position.

Integration into the digital asset ecosystem

The initiative, if implemented as planned in the first quarter of 2026, could play a pivotal role in India's digital wealth ecosystem. The focus is on creating a stable and regulated environment that is beneficial for both companies and the national economy.

With the development of the Arc, India is expected to consolidate its position in international finance, especially in an era where digital assets are becoming increasingly important. The cooperation with Polygon and Anq shows India's innovative strength and ambition to be at the forefront of global technological developments.

As crypto.news reports, the Arc could be a way to stabilize domestic markets while leveraging the power of digital currency. These developments are critical to the future of India's financial system and could have far-reaching implications for the country's economy.