India Advances RBI-Backed Digital Currency Amid Stringent Crypto Taxation

India's Commerce Minister Piyush Goyal has clarified the nation's neutral stance on cryptocurrency—neither endorsing nor banning it, but imposing a 30% tax on gains and 1% TDS on transactions above ₹10,000. The regulatory approach prioritizes risk mitigation over prohibition.

The Reserve Bank of India (RBI) will launch a sovereign digital currency, positioned as a stablecoin alternative. This MOVE aims to streamline transactions, enhance traceability, and reduce paper usage, mirroring global trends like the U.S.'s digital dollar initiatives.

Goyal emphasized that unbacked cryptocurrencies remain high-risk, justifying India's cautious framework. The RBI-backed asset will function within traditional financial surveillance systems, addressing concerns over hacking and fraud.