India to Launch RBI-Backed Digital Currency While Imposing Heavy Taxes on Cryptocurrencies

India is set to introduce a sovereign digital currency backed by the Reserve Bank of India (RBI), Union Minister Piyush Goyal announced during his visit to Qatar. The digital Rupee will leverage blockchain technology, offering traceability and faster transactions while reducing paper consumption. "Our idea is that this will only make it easier to transact," Goyal stated, emphasizing its alignment with traditional currency.

However, the government remains skeptical of non-sovereign cryptocurrencies. "Cryptocurrency without asset or sovereign backing won’t be supported," Goyal declared. While not outright banned, private cryptocurrencies face heavy taxation as a deterrent. "We don’t encourage it because we don’t want anybody," he added, leaving the remark unfinished but signaling regulatory hostility.

The move underscores India’s push for centralized control over digital assets, contrasting with the decentralized ethos of cryptocurrencies like Bitcoin and Ethereum. Market participants now await further details on the digital Rupee’s rollout and its implications for crypto trading in one of the world’s largest economies.