India’s CBDC Push: Piyush Goyal Lays Out the Roadmap

India is moving closer to launching its own central bank digital currency (CBDC). The announcement came from Piyush Goyal, the country’s Minister of Commerce and Industry, who described the plan of launching India’s CBDC during a recent trade visit to Qatar.

For an international audience, Goyal is one of the most influential voices in shaping India’s trade and economic policies. His latest comments highlight why the Indian government wants a digital currency backed by the Reserve Bank of India (RBI), and how it could reshape payments in the country.

Why India Wants a CBDC

Goyal explained that the digital currency would carry the guarantee of the RBI, making it as trustworthy as cash. According to him, the goal is to make everyday transactions faster, cheaper, and easier to trace.

He added that moving to a digital form of money would cut down on paper use, reduce paperwork costs for businesses, and speed up settlements compared to traditional banking. The traceability feature, he noted, could also help tackle fraud and make audits simpler.

In his words:

“India will be coming out with a digital currency backed by the Reserve Bank of India’s guarantee. It will reduce paper consumption, be faster than the banking system, and offer traceability.”

Cautious Stance on Unbacked Crypto

While Goyal expressed confidence in a state-backed digital currency, he was firm about the government’s scepticism toward private cryptocurrencies.

He pointed out that India does not ban cryptocurrencies outright, but it discourages their use by imposing high tax rates. The idea is to limit the risks of holding assets that have no sovereign or asset-based backing.

“We don’t encourage cryptocurrency that is not backed by a central authority or assets. There’s no ban, but it’s taxed heavily because we don’t want people to be stuck with a currency that has no one standing behind it.”

This reflects India’s two-track approach: promote a reliable CBDC while making speculative use of unbacked tokens less attractive.

A Role in Trade Relations

Goyal made these remarks during talks with Qatar about expanding bilateral trade. India’s trade with Qatar reached over $14 billion in 2024–25, and the two countries are working toward a free trade agreement (FTA) by late next year.

Analysts say that a digital rupee could make cross-border transactions faster and more transparent, especially as India deepens trade ties across the Gulf region. The CBDC’s design aims to work smoothly with existing banking infrastructure while making settlements quicker and more auditable.

What It Means for Crypto and Payments

The move signals a balancing act. On one hand, India wants to leverage blockchain-based digital currencies to modernise payments and trade. On the other, it wants to maintain strict oversight and limit risks linked to volatile crypto tokens.

For global investors and crypto enthusiasts, India’s approach is a reminder that CBDCs and private cryptocurrencies can have very different futures depending on national policy.