India Unveils RBI-Supported, Trackable Digital Currency: Union Minister States “We Are Heavily Taxing Crypto”

On 6 October 2025, Piyush Goyal, the Indian Union Minister, announced that the nation is prepared to introduce a sovereign crypto asset, supported by the Reserve Bank of India (RBI), which will be traceable. Goyal emphasized that the country will not promote cryptocurrency,” which lacks sovereign support or is not asset-backed, whether it be by a federal bank or local currency.”

The digital Rupee will resemble traditional currency. It will receive backing from the central bank and utilize blockchain technology.

“Our aim is to simplify transactions. It will also decrease paper usage and facilitate quicker transactions compared to the banking system. Moreover, it will ensure traceability,” Goyal remarked during his official visit to Qatar.

IMPORTANT: India to introduce RBI crypto asset!

Union Minister Piyush Goyal states that Cryptos without asset or sovereign price floor will not be endorsed. pic.twitter.com/GXjsoXt5Fa

— Sapna Singh (@earnwithsapna) October 7, 2025

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“While There Is No Ban (On Crypto) As Such, We Are Heavily Taxing It,” States India’s Union Minister  

According to local news articles, Goyal elaborated on the country’s position regarding digital currency, stating, “Regarding crypto asset that is not backed by the Central Government, although no explicit ban exists, we are imposing heavy taxes on it. We do not promote it as we wish to prevent anyone from being caught with a crypto asset that lacks support and has no one to rely on.”

At present, India’s position is one of neither encouragement nor a complete ban on crypto. However, it enforces significant taxes on digital assets – including a 30% capital gains tax and a 1% Tax Deducted at Source (TDS). These stringent taxes have been enforced since July 2022.

However, is India doing sufficiently? The crypto community would argue not nearly enough! Traders are advocating for clearer crypto regulations and lower taxation rates.

Read More: 99Bitcoins Interview: WazirX CEO on India’s Crypto Growth Amid Policy Gap

WazirX CEO Nischal Shetty Points Out Millions Of Indians Are Engaging With Crypto, But Policy Framework Hasn’t Adapted

“India’s crypto landscape is often perceived solely through the lens of its high taxation and regulatory uncertainty, which overlooks the entire narrative. In spite of these hurdles, India consistently ranks among the top globally for grassroots uptake, developer innovation, and creativity,” stated Shetty during an exclusive conversation with 99Bitcoins.com

The buyer interest is substantial; tens of millions of Indians are currently involved with crypto, yet the policy landscape hasn’t fully transitioned.

“A crucial breakthrough would be to rationalize taxation, particularly by alleviating the TDS burden, to foster legitimate onshore engagement instead of driving it abroad. When paired with clearer regulatory guidelines, this will establish an environment for India’s youthful, tech-savvy populace and dynamic developer sector to create the next generation of Web3 technologies.”

“India possesses the capability not merely to partake in Web3 but to spearhead it globally, given the implementation of appropriate policy clarity that allows entrepreneurs to innovate for billions domestically, then expand internationally.”

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The post India Announces RBI-Backed, Traceable Digital Currency: Union Minister Says “We Are Taxing Crypto Very Heavily” appeared first on 99Bitcoins.