India to launch central bank-backed digital currency
India is preparing to launch a fully backed digital currency issued by the Reserve Bank of India (RBI), Commerce and Industry Minister Piyush Goyal said during an economic forum in Doha.
Goyal emphasized that the government does not endorse cryptocurrencies lacking backing or sovereign support. According to him, the new system will use blockchain to ensure fast, secure, and traceable transactions, similar to the stablecoin framework recognized in the United States following the adoption of the GENIUS Act.
The minister noted that unlike decentralized cryptocurrencies such as Bitcoin, the digital rupee will have state guarantees and stability equivalent to fiat money. He stressed that the government “does not encourage cryptocurrencies without backing or links to real assets,” since such instruments carry the risk of devaluation and lack accountability.
Commerce and Industry Minister of India Piyush Goyal. Source: aninews.in
The launch of the RBI Digital Currency aims to simplify payments, reduce cash usage, and increase transparency in financial flows. Each transaction will be verified on-chain, which, according to the minister, will help curb shadow transfers and money laundering.
At the same time, Goyal clarified that cryptocurrencies are not directly banned in India, but transactions with non-sovereign assets are subject to higher taxes. This policy, he said, is intended to limit speculation and protect citizens from losses.
Analysts note that the introduction of the digital rupee will strengthen India’s position in the global race for central bank digital currencies, alongside China and the EU. Amid rising interest in CBDCs, the RBI’s initiative could become the largest in the developing world, reaching over 1.4 billion users.
Thus, India is betting not on decentralization but on technological modernization of its national currency, combining the efficiency of blockchain with the transparency and control of the traditional financial system.
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