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

India is set to introduce its own RBI-backed digital currency, designed to make transactions simpler, faster, and fully traceable, while also reducing paper usage.

Union Minister Piyush Goyal, during his visit to Doha, Qatar, announced that the upcoming digital rupee will be backed by the Reserve Bank of India, ensuring safety and transparency.

Goyal clarified that the new digital currency will function like traditional money but in electronic form. He explained that the system will use blockchain technology, allowing users to make digital payments that can be verified and tracked, thereby curbing illegal or untraceable financial activities.

He emphasized that while India has not banned cryptocurrencies, “we do not encourage those lacking sovereign or asset backing”.

Goyal said that privately issued cryptocurrencies, like Bitcoin, operate without any official guarantee. “There’s no backend guaranteeing any value,” he said. “Suppose tomorrow there’s no buyer, there’s nobody to guarantee.”