India Announces Launch of Digital Rupee Backed by Reserve Bank

India is advancing its digital currency ambitions with the launch of the digital rupee, a blockchain-based initiative backed by the Reserve Bank of India (RBI). Commerce and Industry Minister Piyush Goyal revealed the plans during a meeting in Doha, positioning the digital rupee as a secure, transparent alternative to private cryptocurrencies.

The state-backed currency will function as legal tender with full government guarantee, mirroring traditional banknotes. Unlike decentralized assets such as Bitcoin, the digital rupee will operate on a regulated framework designed to curb illicit financial activity through traceable transactions.

While India ranks among global leaders in crypto adoption, the Modi administration continues to favor centralized digital solutions over private crypto assets. The RBI's infrastructure is expected to accelerate broader financial digitization, building on existing momentum in digital payments.