India announces the launch of a digital currency backed by the Reserve Bank

Key points:

• India’s digital currency will be backed by the Reserve Bank and use blockchain for transparent and fast transactions.
• Unbacked cryptocurrencies will remain under strict supervision and high taxes.
• Experts call the project a step towards hybrid regulation and increased trust in digital assets.

India is preparing to launch a digital currency backed by the Reserve Bank of India (RBI). Union Minister of Commerce and Industry Piyush Goyal said at a forum in Doha that the digital rupee will simplify transactions, reduce paper usage, and increase payment transparency.

The new currency will run on blockchain, ensuring fast and secure transactions. Goyal emphasized that the project was created for “seamless settlements” comparable in speed to the world’s leading stablecoins.

India is betting on secured assets

The minister noted that the government does not encourage the use of cryptocurrencies without state support.

“We don’t want anybody to be stuck at some point with a cryptocurrency that has no backing and nobody at the backend,” Goyal said.

India will continue to impose high taxes on unsecured cryptocurrencies to limit their circulation.

India Blockchain Alliance founder Raj Kapoor believes that the RBI’s digital currency will become part of the country’s fintech strategy:

“The reference to ‘backed by RBI guarantee’ is substantial and not rhetorical as it seeks to contrast the state-issued digital currency as having superior legitimacy and security compared to ‘unbacked’ cryptos.”

A new stage of regulation

India is moving from a policy of high taxes and passive control to multi-level regulation. Token issuers will be required to hold reserves in regulated storage facilities and undergo audits.

This approach should reduce risks and increase confidence in digital assets, limiting the space for unregulated crypto projects.

Market control and leadership

The launch of the digital rupee coincided with increased AML oversight. India’s Financial Intelligence Unit (FIU) recently sent notices to 25 offshore crypto exchanges, including Poloniex, Bitmex, CEX.IO, and Huione, for violating AML rules and failing to register under the PMLA. Providers have been instructed to restrict access to their websites and applications.

Despite tighter controls, India remains a global leader in cryptocurrency adoption. According to Chainalysis’ 2025 report, the country ranks first in the global crypto adoption index for the second year in a row.