ENA Economy 2025-10-07 17:26:20 <p><span style="font-size:14px"><strong>Mumbai, Oct 7 (KNN)</strong> India is set to introduce a digital currency backed by the Reserve Bank of India (RBI), aimed at making financial transactions faster, more transparent, and secure.</span></p> <p><span style="font-size:14px">The announcement was made by Union Minister Piyush Goyal during his address in Doha.</span></p> <p><span style="font-size:14px">Goyal said that the upcoming RBI-backed digital rupee will function with the same trust and guarantee as paper currency but will use blockchain technology to enable seamless digital payments. </span></p> <p><span style="font-size:14px">He explained that this move aligns with Indias goal of promoting a reliable and regulated digital economy.</span></p> <p><span style="font-size:14px">The minister also drew a distinction between Indias official digital currency and private cryptocurrencies like Bitcoin or Ethereum.</span></p> <p><span style="font-size:14px">He stated that India will continue to discourage cryptocurrencies not backed by sovereign assets, citing risks related to volatility, fraud, and lack of accountability.</span></p> <p><span style="font-size:14px">To further discourage speculative crypto trading, India has maintained high tax rates on such digital assets.</span></p> <p><span style="font-size:14px">The RBI has already conducted pilots of the Central Bank Digital Currency (CBDC), known as the Digital Rupee, for both wholesale and retail sectors.</span></p> <p><span style="font-size:14px">The central bank is also preparing to launch a pilot project on deposit tokenisation, where traditional deposits will be converted into blockchain-based tokens to improve settlement efficiency.</span></p> <p><span style="font-size:14px">According to Goyal, this initiative marks a major step in digitising Indias financial ecosystem, enhancing traceability, and reducing illicit financial flows.</span></p> <p><span style="font-size:14px">The government envisions the digital rupee as a trustworthy, government-backed alternative to unregulated cryptocurrencies.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 43734 https://knnindia.co.in/news/newsdetails/economy/india-to-launch-rbi-backed-digital-currency-to-boost-secure-and-transparent-transactions 2025-10-07 17:26:20 knnindia.co.in