Key Notes
- India is planning to launch an RBI-backed digital currency.
- The initiative aims to ensure transparency and curb illegal transactions.
- Minister Piyush Goyal says the new system will work like regular money but on blockchain.
India is preparing to debut its own digital currency backed by the Reserve Bank of India (RBI) guarantee, like normal currency. The initiative is part of India’s growing focus on integrating blockchain technology into its financial ecosystem.
Union Minister of Commerce and Industry Piyush Goyal announced that the move aims to make transactions faster, safer, and more transparent. He explained that the system, similar to stablecoins regulated in the US under the GENIUS Act, will operate under full government backing.
Goyal added that every transaction under the new digital currency would be verifiable, reducing the scope for illegal or untraceable transfers.
Despite being one of the world’s most crypto-active nations, India’s government and central bank remain wary of privately issued digital currencies like Bitcoin
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“We have not been encouraging cryptocurrency, which does not have sovereign backing or which is not backed by assets,” Goyal emphasized.
India’s Crypto Stance and Oversight
The RBI has repeatedly warned about the risks that unregulated digital assets pose to the financial system, citing threats to investor safety. It continues to advocate for a blanket ban on private cryptocurrencies.
Instead, the central bank promotes its own Central Bank Digital Currency (CBDC) as a regulated alternative.
In recent months, India has intensified its crackdown on crypto activities, even in the absence of a comprehensive regulatory framework. A Reuters report revealed that India’s regulators fear legitimizing crypto could make it systemic and harder to control.
Therefore, the government has no immediate plans to regulate the crypto sector. Instead, crypto use remains confined within strict tax and anti–money laundering measures.
Profits from trading or transferring crypto are taxed at a flat 30%, with a 1% TDS on transactions over specific thresholds. Moreover, investors cannot offset crypto losses against other income.
Amid this tightening environment, several Indian users have reported bank account freezes linked to peer-to-peer (P2P) crypto transactions flagged in ongoing investigations.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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Source: https://www.coinspeaker.com/india-rbi-backed-digital-currency-safer-transactions/
