India sees digital currency supported by the RBI without crypto-push

India is about to introduce a digital currency that is supported by the National Reserve Bank, while the country continues its cautious approach to regulating cryptocurrency.

India has unveiled plans to launch a digital currency, supported by the Reserve Bank of India (RBI), as part of the continuous efforts to discourage the use of unregulated cryptocurrencies. According to local media On 7 October, Minister of Union Piyush Goyal recently clarified the position of the country, by stating that the country does not support crypto assets that do not have sovereign or assets-based support.

“We have not encouraged cryptocurrency that has no support from the government or that is not supported by assets,” said Goyal.

According to him, the digital currency supported by the RBI is intended to streamline financial transactions, to reduce the dependence on physical money and to offer a more traceable and efficient alternative to traditional banking systems.

Although the government has not imposed a full ban on private cryptocurrencies, it has taken steps to make them less attractive through heavy taxes. The minister repeated this position and emphasized that the aggressive tax policy aims to discourage adoption because of the risks associated with this investment category.

“We strain the (cryptocurrency) very hard,” the minister said, adding that the government wants to prevent individuals from having digital assets in possession without clear responsibility if problems arise.

The Indian crypto industry is confronted with a careful policy in the midst of uncertain regulations

Goyal’s comments reinforce the cautious attitude that the Indian government has long taken on the crypto industry. Despite the leading global adoption of crypto currency rank In 2025, the policy direction of India will remain unfavorable for industry. The Supreme Court destroyed the prohibition on Cryptobanks of the RBI in 2020, but the lack of clarity about the regulations has brought the sector into a state of uncertainty.

The central bank maintains its hard position and repeatedly warns that private cryptocurrencies can undermine monetary control and destabilize the financial system. Recent reports also claim that it is unlikely that India will introduce full crypto regulations.

Officials fear that this would identify the sector and risk systemic exposure. At the same time, they acknowledge that a complete ban would probably not be effective when stopping peer-to-peer and decentralized crypto activities.

The authorities also expressed their concern about Stablecoins, which they see as a potential threat to the commonly used Unified Payments Interface (UPI) and the overall payment infrastructure of the country. Nevertheless, the foreign stock markets in India continue to operate under strict AML convenience, where high crypto taxes form a deterrent for increased activity.