Union Minister Piyush Goyal announced on Monday that the government is looking to introduce a digital currency backed by the Reserve Bank of India (RBI), while adding that the government does not support private cryptocurrencies that lack asset backing. In contrast to conventional banking systems, the RBI-guaranteed digital currency is meant to streamline transactions, enable faster and traceable payments, and reduce paper consumption. The minister also clarified that while unbacked cryptocurrencies are not banned, heavy taxation discourages their use, ensuring that users are not left exposed.
CBDC to Enable Support for Efficient, Traceable Transactions
Speaking at a government event in Doha, the Minister of Commerce and Industry emphasised that the approach aims to prioritise financial stability and security. “We don’t want anybody to be stuck at some point with a cryptocurrency that has no backing and nobody at the backend,” he said, highlighting the risk associated with speculative tokens.
As per the Chainalysis 2025 Global Adoption Index, India, along with Pakistan and Vietnam, is among the leaders in global crypto activity, with Asia-Pacific recording a growth in transaction volume from $1.4 trillion (roughly Rs. 12,42,080 crore) to $2.36 trillion (roughly Rs. 20,92,200 crore).
Crypto industry experts interpret this decision as a clear sign of the country’s attention towards stricter regulatory oversight. Raj Kapoor, founder and CEO of the India Blockchain Alliance, told Decrypt that the announcement reinforces the government’s commitment to central bank digital currencies (CBDCs) as an integral part of its fintech strategy.
Kapoor also said that the core objective of the RBI-backed token would be to tackle unbacked cryptocurrencies, particularly speculative tokens, memecoins, or floating DeFi projects that lack any underlying resources. Instead, this token will ensure superior legitimacy and security.
Monica Jasuja, chief expansion and innovation officer at Emerging Payments Association Asia, backed the initiative. “India wants innovation with accountability- the next phase of digital money won’t be borderless. It’ll be sovereign,” she said in a post on X (formerly Twitter).
Piyush Goyal calling for a digital rupee while rejecting crypto not backed by assets says it all
India wants innovation with accountability- the next phase of digital money won’t be borderless
It’ll be sovereign https://t.co/pnZx3gXKuT— Monica Jasuja (@jasuja) October 7, 2025
In an attempt to give the nation a head start in CBDC adoption and to navigate investor preferences towards compliance-aligned projects, the RBI has already explored the digital rupee in both retail and wholesale markets.
However, challenges persist, as observers warn that regulatory uncertainty has driven 80-85 percent of the country’s top crypto talent abroad, while private crypto frameworks remain unclear. Kapoor raised the continuing concerns about privacy, surveillance, and the competitiveness of the token issuers.
He asked how the government plans to manage foreign stablecoins or cross-border token flows that do not meet asset-backed requirements, emphasising the need to balance security with innovation in the emerging digital economy.
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