India to Launch RBI-Backed Digital Currency: Piyush Goyal

India is getting ready to introduce its own digital currency, which will be backed by the Reserve Bank of India (RBI), Commerce and Industry Minister Piyush Goyal announced during a visit to Doha, Qatar.

The new digital currency aims to make financial transactions faster, safer, and more transparent, while also helping reduce the use of paper money.

Mr Goyal explained that the digital currency will work just like regular money, but in an electronic form. "It will have the same value and RBI guarantee as normal currency," he said.

He compared the Indian initiative to “stablecoins” recently introduced in the United States under the GENIUS Act, saying that India’s version would also make financial transactions easier and more efficient.

"It will be quicker than traditional banking and reduce paper usage," he added.

Blockchain for Security and Transparency
The digital currency will use blockchain technology, which helps keep a clear and secure record of all transactions. According to Mr Goyal, this will make it easier to track payments and help fight against illegal or black money dealings, since every transaction can be verified.

Government Stance on Cryptocurrencies
Mr Goyal also spoke about private cryptocurrencies, like Bitcoin. He clarified that India has not banned them, but the government does not support or encourage their use.

"These digital assets are not backed by any government or asset. If no one wants to buy them tomorrow, there’s no one to guarantee their value," he warned.

He also mentioned that the Indian government has placed high taxes on cryptocurrencies. "You can invest in them, but it’s at your own risk. The government doesn’t promote or ban them – we just tax them."

Key Difference: Backed by RBI
Unlike private cryptocurrencies, India’s upcoming digital currency will be fully supported by the RBI, making it more secure and reliable for users.

Mr Goyal concluded by saying that this step will strengthen the financial system, promote digital payments, and make everyday transactions quicker and safer for everyone.