India to Launch RBI-Backed Digital Currency for Faster, Safer Transactions

India is set to introduce its own digital currency, backed by the Reserve Bank of India (RBI), aiming to streamline payments and enhance transaction security, Union Minister of Commerce and Industry Piyush Goyal announced during a roundtable in Doha, Qatar.

“India has announced that we will be launching a digital currency backed by the Reserve Bank of India, with the same guarantee as regular currency,” Goyal said, according to local media reports.

The new system will leverage blockchain technology, enabling faster, more transparent, and secure transactions. Goyal drew parallels with U.S. stablecoins regulated under the GENUIS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), noting that India’s digital currency could similarly reduce illegal activity, as all transactions will be verifiable.

India, the world’s fastest-growing major economy with over a billion citizens, has shown strong crypto adoption, according to Chainalysis. However, the government has remained cautious about private cryptocurrencies, citing the risks posed by unregulated digital assets.

“We have not been encouraging cryptocurrency that does not have sovereign backing or is not backed by assets,” Goyal said, highlighting that privately issued tokens like bitcoin operate without official guarantees of value.

The RBI-backed digital currency marks a significant step in India’s digital finance strategy, combining technological innovation with regulatory oversight to create a state-backed, secure digital payment system.