According to the Reserve Bank of India, a blockchain-based CBDC would enable fast and secure payments.
As reported by ANI, during a meeting in Doha, Qatar, India’s Minister of Commerce and Industry Piyush Goyal confirmed the imminent launch of a national digital currency (CBDC). The digital currency will be backed by the Reserve Bank of India (RBI), the country’s central bank.
Minister Goyal stated that the new digital currency will leverage blockchain technology to ensure faster, safer, and more transparent transactions. Its operation resembles that of stablecoins recently regulated in the United States under the GENUIS Act.
The intrinsic traceability of blockchain will allow verification of every single digital transaction, helping to combat illicit financial activities and increasing the overall security of the economic system, the minister added.
According to data from Chainalysis, the Asian nation—home to over a billion people and the fastest-growing economy in the world—ranks first globally in cryptocurrency adoption. Despite this leadership, Prime Minister Narendra Modi’s government has maintained a cautious stance toward the sector. Minister Goyal noted that while India has not banned cryptocurrencies, they are subject to heavy taxation to discourage their use.
