Not a stablecoin, not a CBDC
According to Commerce Minister Goyal, India’s upcoming digital currency will be officially backed by the RBI and is aimed at simplifying transactions and enabling faster, more transparent transactions compared to traditional banking.
The minister reportedly opposed the RBI-backed project on stablecoins, claiming that the new system would facilitate transactions “more easily and efficiently.”
“It will only make it easier to transact. It will also reduce paper consumption and will be faster to transact than the banking system,” the minister said, adding that the initiative will be backed by blockchain technology to ensure transparency and help in curbing illicit transactions.
Crypto is not encouraged or discouraged: “We only tax it”
While unveiling a new digital currency project by the RBI, Goyal expressed skepticism about cryptocurrencies like Bitcoin (BTC), claiming that such assets have “no backend guaranteeing any value.”
“We have not been encouraging cryptocurrency, which does not have sovereign backing or which is not backed by assets,” the minister reportedly said. He emphasized that India has not been banned cryptocurrency trading, adding:
“Suppose tomorrow there’s no buyer, there’s nobody to guarantee. It’s a thing you can do at your own risk and cost. The government doesn’t encourage or discourage. We only tax it.”
Goyal’s remarks came after Bitcoin, the world’s largest crypto asset by market cap, posted a new high above $126,000 on Monday, according to data from Coinbase.
India’s RBI has long maintained a skeptical stance on cryptocurrencies, engaging in extended discussions over whether to impose an outright ban on crypto transactions in the past.
The central bank launched its wholesale CBDC project, the digital rupee, in late 2022 to improve interbank settlements by reducing transaction costs.
Cointelegraph approached the RBI for comment regarding its new digital currency and tokenization initiatives, but did not receive a response by the time of publication.