India Proposes New Digital Currency Backed by Government Debt

India is developing a state-backed digital currency known as a stablecoin. Unlike other cryptocurrencies, this new token would be backed by the country's government debt. Proponents call the project the Asset Reserve Certificate (ARC). They believe it could reduce India's borrowing costs and attract a more diverse group of investors. This system could create a cycle where cheaper funding strengthens public finances. A key goal is to increase financial transparency by directly linking the digital currency's value to sovereign debt. The move is also seen as a step toward reducing the world's reliance on the US dollar for international trade.