India takes a paradoxical stance in the global cryptos adoption index 2025, leading while enforcing one of the most aggressive tax regimes. Meanwhile, the Reserve Bank of India is set to launch a state-backed digital currency, reshaping the country's financial landscape. Balancing technological innovation and government control, New Delhi's path is divisive yet intriguing.
During the India-Qatar Joint Commission on Economic and Trade Cooperation, Commerce Minister Piyush Goyal officially announced the government’s plans to launch a central bank digital cryptos (CBDC). This announcement marks a strategic turning point in India’s policy toward decentralized cryptocurrencies.
The RBI’s digital currency will be a government-backed stablecoin, underpinned by the Reserve Bank of India. Goyal compared it to American stablecoins, but emphasized a key difference: complete state guarantee, aiming for efficiency and transaction traceability.
This CBDC aims to gradually replace physical currency for everyday transactions. The government highlights three main advantages:
The ecological dimension of the project hasn’t escaped the authorities, who emphasize paper savings and the modernization of the monetary system.
The current regulatory framework reveals a purely tax-focused approach that massively frustrates the Indian crypto community. The government imposes a flat 30% tax on all cryptocurrency gains, accompanied by a 1% tax deducted at source (TDS) on each transaction exceeding 10,000 rupees. This policy transforms every trade into a documented taxable event.
A Mudrex survey of 9,352 participants exposes a major disconnect between citizen expectations and government decisions:
However, the official position remains clear: India wishes neither to encourage nor ban non-backed cryptocurrencies. Goyal justifies the high taxation by the intrinsic risks associated with decentralized assets. Consequently, this “neither-nor” strategy translates into hostile neutrality, prioritizing immediate tax revenues rather than developing an innovative ecosystem.
The Indian paradox reaches its peak with the 2025 Global Adoption Index ranking, where the country occupies the first place worldwide for cryptos adoption. This performance, despite a strict regulatory framework, illustrates the resilience and growing interest of Indian investors. Organizations like the Bharat Web3 Association and the UPI infrastructure promote the integration of blockchain solutions into the real economy.
This dynamic raises a key question: can India maintain its leadership while imposing heavy taxation? The RBI’s CBDC could channel this enthusiasm toward a controlled ecosystem, combining innovation and state supervision.
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