New Delhi: India is set to launch its own digital currency backed by the Reserve Bank of India (RBI), Union Minister of Commerce and Industry Piyush Goyal announced during a roundtable meeting in Doha, Qatar.
The initiative aims to make financial transactions faster, safer, and more transparent, while also reducing the use of paper currency.
Goyal explained that the RBI-backed digital currency will function like regular money but in electronic form. “India will soon come out with a digital currency backed by the Reserve Bank of India guarantee, just like normal currency,” he said.
Drawing a comparison with the “stable coins” introduced in the United States under the GENIUS Act, Goyal noted that India’s digital currency will make transactions simpler and more efficient.
He added that the new system will bring multiple benefits, including faster processing and reduced paper consumption. “It will make transactions easier and faster than the current banking system,” Goyal said.
The currency will use blockchain technology to ensure transparency and traceability, helping curb illegal financial activities by allowing every transaction to be verified.
On the issue of cryptocurrencies, Goyal clarified that India has not banned them but does not promote their use. “We do not encourage cryptocurrencies that lack sovereign backing or asset support,” he said, warning of the risks linked to unregulated digital assets.
He emphasized that private cryptocurrencies such as Bitcoin have no guaranteed value. “There’s no backend guaranteeing any value. If there’s no buyer tomorrow, there’s no guarantee,” he said, adding that the government has imposed heavy taxes on such assets.
Goyal underscored that India’s upcoming digital currency will be fundamentally different from private cryptocurrencies, as it will carry the full guarantee of the RBI. This, he said, will ensure security, reliability, and financial integrity for all users.
