By Sri Varshith Kumar Reddy E

India entered 2026 with a puzzle sitting at the center of its economic policy. 

The Reserve Bank of India still leans toward restriction on cryptocurrency. 

Government papers reviewed in July show the central bank opposing bank exposure to crypto and to stablecoins, whether foreign-issued or rupee-pegged. 

A parliamentary panel sat down with the RBI and the Institute of Chartered Accountants on July 2 and walked away without producing any legislative shift. 

The 30 percent flat tax on virtual digital asset gains lies untouched in the 2026-27 budget. On top of it, a new penalty regime takes hold on April 1, adding a daily fine of ₹200 plus a flat charge of ₹50,000 for reporting lapses.

Set beside that caution, the same government runs one of the most active blockchain infrastructure programs anywhere on earth. 

The Ministry of Electronics and Information Technology launched the Blockchain India Challenge in early 2026, funding startups that build land registry, supply chain, and digital identity systems on distributed ledgers. 

37.90 Lakh DigiLocker Users in J&K

Best Test Automation Tools 2026, Scored on a Rubric 

Years earlier, the Principal Scientific Adviser’s office drafted a National Strategy on Blockchain that set the template: shared infrastructure, research backing, and application development pushed into sector after sector.

Look closely and the contradiction sharpens rather than fades. 

Crypto and blockchain share a common technical spine, but Indian policy treats them as separate species. Cryptocurrency........

© Kashmir Observer