India to Launch Digital Currency and Cautions on Crypto
- India to launch RBI backed digital currency for faster, paperless transactions
- Government discourages crypto currencies without asset or sovereign backing
- Talks underway with Qatar to fast track free trade agreement (FTA)
India is preparing to launch its own digital currency, backed by the Reserve Bank of India (RBI). The move aims to make transactions simpler, faster, and paperless while ensuring full traceability. Union Minister Piyush Goyal confirmed the development during his recent visit to Qatar.
He explained that the RBI backed digital currency would function like traditional money but in digital form, offering greater efficiency and transparency. “It will help reduce paper usage and make financial transactions easier and quicker than the current banking system,” Goyal said.
While promoting the RBI digital currency, the minister also warned against using cryptocurrencies that lack sovereign or asset backing. He clarified that although such crypto assets are not banned in India, they are taxed heavily to discourage use. “We do not support cryptocurrencies that are not backed by any government or physical asset. There is no one to hold accountable if something goes wrong,” he stated.
In addition to economic reforms, India is strengthening international trade ties. Goyal announced that India and Qatar have agreed to fast-track talks for a Free Trade Agreement (FTA). He expects the agreement to be finalized by mid or late next year. The goal is to double the current trade volume, which stood at over 14 billion US dollars in 2024-25.
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India already has a trade pact with the UAE and is close to finalizing one with Oman. A deal with Qatar would further expand India’s trade reach within the Gulf region.
