Larry David-Style: India Skeptical of Crypto as RBI Rolls Out Digital Cash

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The Indian government is staring at crypto like it’s a joke they just can’t stop telling themselves. They’re skeptical, they’re cautious, and somehow also a little impressed by the idea that you can transact without carrying a ton of paper. It’s the same old routine: a plan, some buzzwords, and a lot of nodding while pretending you understand what “digital currency backed by the RBI” actually means. 😂

India will soon launch an RBI-backed digital currency, India’s Commerce Minister Piyush Goyal said in a roundtable during his visit to Qatar, The Hindu reported on Tuesday. Great, a currency with a government-approved stamp of “trust us.” It’s like someone saying, “Don’t worry, I’ve got the contract!” while handing you a napkin with a signature on it. 🤔

In a separate development, the RBI plans to launch a pilot on deposit tokenization on Wednesday, RBI’s chief general manager of the fintech department, Suvendu Pati, reportedly said.

According to Reuters, the RBI is expected to use the wholesale segment of India’s central bank digital currency (CBDC) as the foundational layer for its deposit tokenization pilot, collaborating with several domestic banks.

Not a stablecoin, not a CBDC

According to Commerce Minister Goyal, India’s forthcoming digital currency will be backed by the RBI and is aimed at simplifying transactions and enabling faster, more transparent transactions than traditional banking. You’re telling me it’ll make things faster and more transparent? I’m listening, but I’ve heard that one before-usually right before a punchline. 😅

The minister reportedly opposed an RBI-backed project on stablecoins, claiming that the new system would facilitate transactions “more easily and efficiently.”

“It will only make it easier to transact. It will also reduce paper consumption and will be faster to transact than the banking system,” the minister said, adding that the initiative will be backed by blockchain technology to ensure transparency and help curb illicit transactions. 😆

Crypto is not encouraged or discouraged: “We only tax it”

While unveiling the new digital currency project by the RBI, Goyal expressed skepticism about cryptocurrencies like Bitcoin (BTC), claiming that such assets have “no back end guaranteeing any value.”

“We have not been encouraging cryptocurrency which does not have sovereign backing or which is not backed by assets,” the minister reportedly said. He emphasized that India has not banned cryptocurrency trading, adding:

“Suppose tomorrow there’s no buyer, there’s nobody to guarantee. It’s a thing you can do at your own risk and cost. The government doesn’t encourage or discourage. We only tax it.”

Goyal’s remarks came after Bitcoin, the world’s largest crypto asset by market cap, posted a new high above $126,000 on Monday, according to data from Coinbase.

India’s RBI has long maintained a skeptical stance on cryptocurrencies, engaging in extended discussions over whether to impose an outright ban on crypto transactions in the past. It’s the same old debate: ban the thing or tax it into submission? Classic move, very dramatic. 🕵️‍♂️

The central bank launched its wholesale CBDC project, the digital rupee, in late 2022 to improve interbank settlements by reducing transaction costs. Reduction of costs, more drama, same stakes-this is bureaucracy at its finest. 💼

CryptoMoon approached the RBI for comment regarding its new digital currency and tokenization initiatives, but had not received a response by the time of publication.

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2025-10-07 15:08