According to local news agency ANI, India’s Minister of Commerce and Industry Piyush Goyal said that the government is developing a digital currency that will carry a full guarantee from the Reserve Bank of India (RBI). He shared the update during a business meeting in Doha, Qatar.
The minister explained that the new system will enable faster, safer, and more transparent transactions. It will use blockchain technology and serve as the official digital counterpart of the Indian rupee. Goyal noted that the state-backed digital currency will function like regular money but help reduce paper use and speed up settlements compared to traditional banking processes.
The minister emphasized that every transaction in the new system will be traceable, which will help curb illegal activities and increase trust in digital payments. In his view, this approach will make the payment infrastructure more secure and efficient.
Goyal compared the upcoming digital rupee to U.S. stablecoins legalized under the GENUIS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act). He pointed out that both systems are based on transparency and guaranteed backing.
The minister also clarified the government’s position on private cryptocurrencies. According to him, India does not encourage the use of assets that lack state or material backing.
“As for cryptocurrencies not supported by the central government, while there is no outright ban, we tax them very heavily. We do not encourage their use because we don’t want anyone to end up in a situation where their cryptocurrency has no backing from any side,” he added.
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