Union Finance Ministry has take a decision on a state-issued cryptocurrency soon but ban all private cryptocurrencies. The VHP leader had sought a ban on all cryptocurrencies alleging its usage to fund terrorism, drugs and other 'anti national activities'. As all private cryptocurrencies are still not considered as legal tender or coin in India, but the govt may introduce an official digital currency in India.
When the CBDC or whatever they want to call it comes in, it is going to be a wild chase for Tether and all the similar companies. People keep believing that the market will not look at these but the reality is that if you have BTC-USDT pair on one hand and BTC-USD on the other legitimately, literally backed by the government instead of some crap company based in Bahamas backing it, then people will prefer the government backed one. Yeah, sure we do not like the government hence why we invest into something decentralized and all that but that is just a lie to tell ourselves.
The reality is that people come in here for money, ETH is consumed by Vitalik, Tron has been playground of Justin Sun, SOL is loved so much but froze blockchain with a snap of finger when there was a problem, we haven't been decentralized in a long time, Tether has been the biggest proof of it, tens of billions of dollars given to them with the understanding it could be taken back if needed, who knows? Maybe we won't be. US government still is better.