Catenaa, Sunday, October 12, 2025-India plans to roll out a digital currency backed by the Reserve Bank of India (RBI) as part of a strategy to discourage the use of unbacked private cryptocurrencies, Union Minister of Commerce and Industry Piyush Goyal announced on Monday (6) in Doha.
The move aims to simplify transactions, reduce paper consumption, and enable faster, traceable payments.
Goyal clarified that India has not banned unbacked cryptos but is imposing heavy taxes to disincentivize their use, citing concerns over assets lacking a sovereign or verifiable backing.
Experts say the RBI-guaranteed digital rupee could strengthen trust in state-issued digital money but may slow private crypto innovation due to regulatory complexity and bureaucratic delays.
Raj Kapoor, founder of the India Blockchain Alliance, described the announcement as a clear shift toward stricter oversight, signaling a move from a “tax-and-tolerate” approach to a tiered compliance regime favoring asset-backed tokens.
Monica Jasuja, of Emerging Payments Association Asia, said the initiative positions India’s CBDC as a safer, state-guaranteed alternative to private stablecoins, emphasizing regulatory-aligned fintech ventures over speculative crypto projects.
The RBI has already piloted the digital rupee in retail and wholesale segments, giving India a head start in central bank digital currency implementation.
However, industry observers warn regulatory uncertainty has caused a talent exodus, with 80–85% of top crypto professionals relocating internationally.
Questions remain over privacy, compliance burdens, and the treatment of foreign stablecoins under India’s emerging framework.
