India Backs Digital Rupee Expansion While Tightening Grip on Crypto

Speaking at a government event in Doha, Commerce and Industry Minister Piyush Goyal said the Reserve Bank of India’s (RBI) central bank digital currency will soon enter a new phase of expansion.

Goyal emphasized that the digital rupee is designed to bring speed, efficiency, and transparency to payments while drastically cutting paper use. “This system will make everyday transactions simpler and more traceable than ever before,” he said, calling the digital rupee a cornerstone of India’s modernization agenda.

The initiative is part of India’s broader strategy to strengthen control over its monetary system as the crypto industry continues to grow globally. While the government has not imposed an outright ban, cryptocurrencies are weighed down by steep taxes and limited policy support, making trading less attractive for most retail investors.

Officials argue that regulating decentralized assets would inadvertently give them official legitimacy, something India wants to avoid. A government paper cited by Reuters earlier this year made clear that the priority is to promote a regulated, sovereign digital currency instead of enabling private crypto markets.

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Still, enthusiasm for crypto among Indian users remains strong. Despite the government’s cool stance, India ranks first in global crypto adoption for the second year in a row, according to a recent Chainalysis report. The country leads in nearly every category – from decentralized finance participation to institutional inflows – showing that public interest in blockchain assets remains undeterred.

Analysts say India’s approach could redefine how large economies engage with digital finance: embracing blockchain innovation without surrendering monetary control. As the RBI moves toward a wider rollout of the digital rupee, New Delhi appears determined to set the tone for a future where innovation and state oversight coexist uneasily – but deliberately.

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