India to Roll Out RBI-Linked Digital Currency Amid Dismissal of Crypto With 'No Backing'

India is set to introduce a digital currency backed by the Reserve Bank of India (RBI), aimed at simplifying transactions and reducing reliance on traditional banking methods. Union Minister Piyush Goyal announced the initiative during an event in Doha, emphasizing the need for such a currency to mitigate risks associated with private cryptocurrencies, which lack backing. While not outright banned, the Indian government heavily taxes these unbacked cryptos to deter usage. Experts view Goyal’s announcement as a strategic shift towards tighter regulation of digital assets, favoring state-backed, secure currencies over speculative tokens. The RBI has already piloted its digital rupee, aligning with the trend of increasing digital asset transactions in the Asia-Pacific region. The initiative indicates a move toward a 'monitor and control' framework for cryptocurrencies, contrasting unbacked tokens with the legitimacy of the RBI-backed option. Overall, this development reflects India's commitment to merging technology with state trust in digital finance, possibly affecting the future landscape of private cryptocurrencies.

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