Indian fintech startup Mintoak has acquired Digiledge, marking the first deal in the country's central bank digital currency sector.
Details of Mintoak and Digiledge Deal
Indian fintech startup Mintoak reportedly acquired Digiledge for approximately $3.5 million. This acquisition involves Digiledge’s expertise in central bank digital currency (CBDC) and bill payment solutions.
E-Rupee Progress in India
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. Despite this, e-rupee adoption has been slow, with just 1 million retail transactions reported by late June 2024.
India's Cryptocurrency Market
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. Investors from smaller cities are driving the market, seeking alternatives amid slow job growth and stagnant wages.
Mintoak's acquisition of Digiledge offers new hope for improving the e-rupee infrastructure, despite challenges in its adoption. Meanwhile, the rise of cryptocurrency in the country opens new opportunities for investors.
