Union Minister Piyush Goyal stated that India does not support cryptocurrencies that do not have sovereign or asset backing, such as those not supported by the Reserve Bank of India (RBI) or a local currency.
Key Highlights
- India will soon launch an RBI-backed digital currency to simplify and secure transactions.
- Cryptocurrencies lacking sovereign or asset backing won’t be encouraged and will face heavy taxation.
He announced that India will launch a digital currency backed by an RBI guarantee, with the goal of simplifying transactions, reducing paper usage, and allowing for faster, traceable transactions than traditional banking.
"We have not encouraged cryptocurrency that does not have sovereign backing or is not backed by assets, such as federal or local currency. India has also announced that it will launch a digital currency backed by a Reserve Bank of India guarantee-like currency. We believe that this will only make transactions easier. It will also use less paper and be faster to transact than the banking system. But it will also be traceable," he said.
Goyal clarified that, while there is no outright ban on cryptocurrencies without Central government support, they are heavily taxed to discourage their use due to the risks associated with their lack of backing and accountability.
"While there is no outright ban on cryptocurrency that is not backed by the central government, we do heavily tax it. We don't encourage it because we don't want anyone to end up with a cryptocurrency with no backing and no one on the backend," he explained.
On Monday, Goyal announced the visit of a business delegation aimed at increasing bilateral trade and investment. "I believe that by the middle of next year, or the third quarter of next year, we will be able to finalize an FTA, if not sooner," Goyal told reporters in Doha.
Qatar is one of India's key trading partners within the Gulf Cooperation Council (GCC), with bilateral trade worth more than USD 14.15 billion in 2024-25. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE make up the Gulf Cooperation Council.
Also Read: Govt Holds Extensive FTA Talks to Protect Domestic Industry: Piyush Goyal
India has already signed a trade agreement with the United Arab Emirates and is expected to sign another with Oman soon.
Minister Goyal spoke with his Qatari counterpart, Sheikh Faisal bin Thbin Faisal Al Thani, about launching FTA negotiations. Both ministers agreed to expedite the process to support their ambitious goal of doubling bilateral trade.
