India to Launch RBI-Backed Digital Currency, Says Union Minister

India is preparing to introduce a digital currency backed by the Reserve Bank of India (RBI), according to Union Minister Piyush Goyal. The MOVE aims to enhance financial transactions by making them faster, more transparent, and less reliant on paper. Goyal emphasized that the government does not endorse private cryptocurrencies lacking sovereign or asset backing, such as those unlinked to the RBI or national currencies.

The upcoming digital rupee will function like traditional money but with added benefits like traceability and efficiency. While private cryptocurrencies are not banned, they face heavy taxation to curb speculation and protect consumers. crypto transactions are currently taxed at 30%, with minimal deductions.

Goyal underscored the RBI-backed digital rupee as a safer alternative for digital payments. The stance reflects India's cautious approach to unregulated cryptocurrencies while advancing its own central bank digital currency (CBDC).