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India’s crypto story is moving forward, but not without friction. In an exclusive conversation with Coinpedia, Ashish Singhal, Co-founder CoinSwitch, breaks down where things stand, from CBDCs and UPI dominance to Budget 2026, taxation, and why startups are quietly looking offshore.
UPI Dominates, But CBDC Plays a Different Game
Singhal makes it clear that India isn’t lacking payment solutions. Unified Payments Interface has already made transactions effortless, whether it’s paying vendors or splitting bills.
But CBDC isn’t competing with UPI. It’s something deeper.
He explains that a CBDC is essentially digital cash issued by the central bank, like a ₹100 note, but on your phone. Its real strength lies in targeted use cases. Government subsidies can be programmed for specific spending, and emergency funds can reach citizens instantly without intermediaries.
In his words, UPI is the “road,” while CBDC becomes a new “vehicle” running on it. For users, the experience may not change, but the backend becomes far more powerful.
Budget 2026: Clarity Without Relief
India Budget 2026 kept crypto taxes unchanged, continuing with one of the toughest regimes globally.
Singhal doesn’t see this as an attempt to kill retail participation, but rather to control it. The framework has brought clarity and improved traceability, even if high taxes and 1% TDS have pushed some activity offshore.
He suggests the government is prioritizing responsible investing and compliance first. But going forward, a more balanced tax structure, aligned with other asset classes, could unlock real growth while keeping innovation within India.
Startups Are Watching… and Moving
Moreover, regulatory ambiguity remains a bigger concern than taxes.
Singhal points out that many Web3 founders are drifting toward hubs like Dubai, Singapore, and Hong Kong, where clearer rules make it easier to access banking, capital, and partnerships.
India still has a strong advantage, its massive developer base and user market. But without clear and proportionate regulation, that edge could slowly erode.
Bitcoin ETFs and What Comes Next
On the question of Bitcoin ETFs, Singhal takes a grounded view.
He says India is still figuring out the basics, how crypto assets are classified, who regulates them, and how investors are protected. Products like ETFs will only come after that foundation is set.
Still, global momentum, especially after U.S. ETF approvals, is hard to ignore. Institutional demand in India is already building, particularly among investors seeking exposure without directly holding crypto.
Why Regulation Is Slower Than Adoption
Singhal ends with a reality check.
Crypto isn’t just another sector; it touches capital controls, taxation, AML, and financial stability. That means multiple regulators are involved, which naturally slows things down.
India, he says, is taking a “risk-first” approach, building guardrails through taxation and compliance while watching how global frameworks evolve.
Adoption, meanwhile, doesn’t wait. It’s market-driven, fast, and already ahead of policy.
And that gap, between speed and structure, is where India’s crypto future will ultimately be decided.
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