The Indian government’s National Digital Currency Commission (NDCC) is now accepting Bitcoin payments.
The move comes after the Indian currency lost nearly $3 billion in 2016.
The new rules, announced last week, require Indian banks and companies to provide “digital currency” addresses for payments in the country.
It also gives banks and payment processors the option to accept Bitcoins for payment.
This is the latest step in the government’s efforts to address the challenges posed by the cryptocurrency.
India’s largest bitcoin exchange, Bitpay, has accepted Bitcoins in the past.
But the digital currency has been on a slow slide.
The value of Bitcoin in India has been hovering around $500 for months, which is well below the market value of the country’s $2 trillion GDP.
The government hopes to use Bitcoin’s rapid adoption to help reduce India’s reliance on foreign currencies.
The Indian government is also working to create a virtual currency for foreign investors to hold in their personal accounts.
In a statement, the National Digital currency Commission said: “We are actively exploring various options to develop digital currencies for foreign exchange, including virtual currencies.”