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India to Introduce Digital Currency, Discourages Unbacked Crypto

India to Introduce Digital Currency, Discourages Unbacked Crypto

TheCryptoUpdatesTheCryptoUpdates2025/10/07 13:33
By:Shivi Verma

India’s Commerce Minister Piyush Goyal just dropped some major news about the country’s crypto stance. The government plans to roll out a digital currency backed by the Reserve Bank of India while making it clear they don’t want people using cryptocurrencies without proper sovereign or asset backing.

Goyal explained that this new RBI-guaranteed digital currency will make transactions easier, faster than traditional banking, and cut down on paper usage. The big difference from regular crypto? Full traceability, meaning the government can track every transaction.

While India isn’t outright banning unbacked cryptocurrencies, they’re hitting them with extremely heavy taxes to discourage people from using them. Goyal said the government worries investors could get stuck holding worthless tokens with nobody accountable behind them.

His comments came during a business trip to Qatar where he’s negotiating trade deals. India hopes to finalize a free trade agreement with Qatar by mid-2026, building on similar partnerships with the UAE.

The irony here is pretty thick – India consistently ranks as one of the world’s top countries for crypto adoption despite the government’s skeptical stance. By taxing crypto heavily instead of banning it outright, they’re basically saying “we can’t stop you, but we’ll make it hurt.”

This announcement comes right as Bitcoin smashed through $125,000 and institutional adoption is exploding globally, showing the disconnect between India’s approach and worldwide trends.

Conclusion

India announced the RBI-backed digital currency launch while imposing heavy taxes on unbacked cryptocurrencies to discourage adoption despite leading global crypto usage rankings.

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