India to Launch RBI-Backed Digital Currency Soon

Union Minister of Commerce and Industry Piyush Goyal announced that India will soon launch its own digital currency backed by the Reserve Bank of India (RBI). Speaking at a roundtable during his visit to Doha, Qatar, Mr. Goyal said the move aims to make financial transactions faster, safer, and more transparent, while reducing paper use in the economy.

Function and Technology

The Minister explained that the digital currency will operate like traditional money but in an electronic form, and will be powered by blockchain technology.
He noted that the system will ensure transparency, traceability, and help curb illegal transactions, as every digital payment can be verified within the network.

Comparison and Distinction

Comparing it to the “stable coins” introduced in the United States under the GENIUS Act, Mr. Goyal stated that India’s digital currency will make transactions easier and more efficient.
However, he clarified that India’s digital currency will differ from private cryptocurrencies, as it will carry the full backing of the RBI, ensuring security, stability, and reliability for users.

Ongoing Pilot — Digital Rupee (e₹)

The Digital Rupee (e₹) — India’s Central Bank Digital Currency (CBDC) — is currently being pilot tested across two segments:

• Retail (public)
• Wholesale (banks and financial institutions)

e₹ is the digital form of the Indian Rupee (₹), offering features similar to physical cash such as RBI guarantee, convenience of use, and finality of settlement.
It is stored in a digital wallet and can be used for sending, receiving, or making payments like a physical ₹ note.

Legal Status

Under Section 26 of the Reserve Bank of India Act, 1934, every ₹ banknote — and by extension, e₹ — is legal tender guaranteed by the Central Government.
The Digital Rupee is thus a liability of the Reserve Bank of India, carrying the same legal validity as physical currency.