India is preparing to launch a national digital currency, which will be backed by the Reserve Bank of India (RBI) and use blockchain technology. This was announced by Commerce and Industry Minister Piyush Goyal at a meeting in Doha.

He said the initiative aims to create a secure, fast and transparent platform for transactions similar to the stablecoin solutions in the US.

The digital rupee will become an official currency with a government guarantee, just like traditional banknotes. However, he emphasized that India does not intend to encourage the use of private cryptocurrencies such as bitcoin, which are neither asset-backed nor regulated by the government.

Goyal explained that the new system will allow each transaction to be tracked and validated, which will help reduce the risks of money laundering and other illegal transactions. He also said that RBI’s digital infrastructure will serve as a foundation for further digitalization of the financial sector.

According to Chainalysis, India is already a global leader in terms of adoption rate of cryptocurrencies and digital payments. However, the Narendra Modi-led government is being cautious, preferring to develop public solutions instead of liberalizing private tokens.

The move to digital currency is seen as a move to make payment systems more efficient and reduce reliance on cash. Authorities expect the project to strengthen India’s position as one of Asia’s technological leaders in digital finance.

The development of the digital rupee fits into India’s strategy to modernize its financial infrastructure and expand access to banking services. In the long term, the project could become a tool for international settlements with partners in Asia and the Middle East.

The government is considering integrating the new currency into the Aadhaar digital identification system. This will simplify citizens’ access to public services and increase the transparency of financial flows.