Indian fintech startup Mintoak has reportedly acquired Digiledge for approximately $3.5 million.
This acquisition marks the first in India’s central bank digital currency (CBDC) sector and involves Digiledge’s expertise in CBDC and bill payment solutions.
Mintoak aims to enhance its partner banks—HDFC Bank, Axis Bank, and SBI—with the ability to offer e-rupee payment solutions. Mintoak CEO Raman Khanduja stated that the move is intended to make it
“easier for merchant acquirers to grow and help more small and medium enterprises access digital tools and financial services.”
The Reserve Bank of India introduced its e-rupee pilot in December 2022, initially limiting its use to banks. However, in April 2023, the central bank broadened access to include payment firms.
E-rupee adoption has been slow, with the Reserve Bank of India reporting just 1 million retail transactions by late June 2024. This milestone was achieved only after local banks introduced incentives and partially paid employee salaries in the state-backed digital currency. The RBI had previously urged banks to increase transactions to at least 1 million per day by late 2023 to test the system’s scalability. However, this push has since ceased, casting doubt on the future of the digital currency initiative due to the gap between incentivized metrics and actual user adoption.
While the e-rupee faces challenges, India’s crypto market is experiencing a surge. In Q4 2024, crypto trading volumes reached $1.9 billion, more than doubling from the previous quarter; the increase was driven by investors from smaller cities looking for alternatives amid slow job growth and stagnant wages. Mudrex co-founder Edul Patel attributed the trend to stricter stock market regulations and rising curiosity about digital assets. Many young traders are shifting from stocks to crypto, with cities like Jaipur, Lucknow, and Pune leading adoption. Despite ongoing regulatory uncertainty, crypto is increasingly considered a crucial income source for many Indians.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
