Indian Union Minister Piyush Goyal has stated that India is preparing to introduce a digital currency backed by the Reserve Bank of India (RBI). The move aims to make financial transactions faster, more transparent, and less dependent on paper.
According to an ANI report, speaking at an event, Goyal clarified that the government does not endorse cryptocurrencies without any official or asset-based support, such as private digital tokens not linked to the RBI or a national currency.
“We are not encouraging cryptocurrencies that have no sovereign or asset backing,” Goyal said. He explained that the upcoming digital rupee will operate like traditional money but offer added advantages such as traceability and greater efficiency.
India’s caution on cryptocurrency
Goyal further noted that while private cryptocurrencies are not formally banned, they are heavily taxed to discourage speculation and protect consumers.
“As far as cryptocurrency not backed by the Central government is concerned, there is no ban, but it is taxed very heavily,” he said. “We don’t encourage it because we don’t want anybody to be stuck at some point with a cryptocurrency that has no backing and nobody at the backend.”
He emphasized that the RBI-backed digital rupee would offer a safer and more reliable digital payment option for users.
Currently, gains from crypto transactions are taxed at 30%, with minimal deductions allowed, and a 1% TDS applies on transfers above a set threshold. This reflects the Indian government’s cautious approach toward digital assets that lack sovereign backing.
Beyond digital finance, Goyal’s visit to Doha also focused on boosting India’s trade relations. He said a Free Trade Agreement (FTA) with Qatar could be finalized by the middle or latter part of next year.