India Plans RBI-Backed Digital Currency to Boost Secure Transactions

India is set to launch a digital currency backed by the Reserve Bank of India (RBI) to enable faster, safer, and more transparent transactions while reducing paper use. Union Minister Piyush Goyal highlighted that this RBI-backed digital currency will function like traditional money but in electronic form, leveraging blockchain technology to ensure full traceability and curb illegal transactions. The initiative aligns with India's cautious stance on private cryptocurrencies, which lack sovereign backing and are heavily taxed to discourage their use due to associated risks. Experts suggest that India's approach includes a hybrid regulatory framework to ensure greater legitimacy and security of digital assets compared to unbacked tokens. Alongside this financial innovation, India is also working to strengthen international trade ties, including progressing towards a Free Trade Agreement with Qatar. This digital currency initiative is viewed as a core part of India's broader fintech strategy, emphasizing state-backed digital assets over speculative cryptocurrencies.