India will introduce a digital currency backed by the Reserve Bank of India (RBI) as part of a national effort to curb reliance on unregulated cryptocurrencies. Union Commerce and Industry Minister Piyush Goyal’s latest announcement has sparked discussions across industries. Speaking in Doha, Goyal described the RBI-linked digital currency as a state-guaranteed payment solution designed to simplify transactions, reduce paper usage, and facilitate faster, traceable digital payments across the economy.
Goyal explained that the “RBI-guaranteed” digital currency will function as a direct extension of India’s fiat system, offering the same assurance as physical rupees. Each unit of the upcoming digital rupee will be fully backed by the central bank, providing citizens and institutions with a secure and reliable alternative for making payments.
He clarified that while cryptocurrencies have not been banned outright, India has implemented heavy taxes on them. These taxes serve as a deterrent to speculative use and aim to shield citizens from potential losses. “We don’t want anybody to be stuck with a cryptocurrency that has no backing and nobody at the backend,” Goyal stated during his address.
The program aligns with the recent Chainalysis 2025 Global Crypto Adoption Index, which ranks India, Pakistan, and Vietnam among the top three countries for crypto activity. According to the report, the volume of crypto transactions in the Asia-Pacific region increased from 1.4 trillion to 2.36 trillion over the last year.
The new digital currency in India will be a state-controlled balance to the non-centralized crypto assets. It will provide speed and regulatory control over its integration with existing payment systems. The government should promote transparency in financial matters, increase the effectiveness of cross-border payments, and decrease reliance on physical cash.
Meanwhile, India continues to proceed carefully on broader crypto regulation. According to a Reuters report, a recent government document reveals that India has resisted creating a comprehensive cryptocurrency framework due to concerns about systemic risk. The Reserve Bank of India maintains that unregulated digital assets could destabilize monetary policy and financial stability.
India already has some experience in the operation of its digital rupee pilot, e-rupee. The project, introduced in 2022, has been tested in both wholesale (e₹-W) and retail (e₹-R) forms. Initial experiments were encouraging, but they were followed by a decline in usage as incentives were removed, highlighting the challenge of organically promoting central bank digital currencies (CBDCs).
Raj Kapoor, founder and CEO of the India Blockchain Alliance, told Decrypt that Goyal’s statement signals India’s commitment to positioning CBDCs at the heart of its financial modernization plan. He said, “Goyal’s explicit claim simply reiterates that the government continues to see a CBDC as a core plank of its fintech strategy.”
Kapoor added that the reference to an “RBI guarantee” is not symbolic but a critical distinction from private cryptocurrencies. He said the government aims to contrast the legitimacy and stability of a state-backed digital currency with those of speculative or meme-based tokens that lack tangible reserves.
India's decision to launch a central bank-backed digital currency is a significant milestone in the country's financial history. The program is a safety-oriented but progressive idea, as it guarantees safe and traceable transactions without attracting risky crypto-speculation. India's experimentation with digital currency is an action that other countries may follow, and its strategies may influence the further development of digital currency use, combining innovation with a high level of regulatory confidence.
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