A high speed digital telemetry system (10) includes a transmitter (12) and a receiver (14), at least one of which is adapted for use in an implantable device. The transmitter includes a data encoder (14), modulator (16), transmitting coil (20), and transmitting coil drive circuit (18). The data encoder examines prescribed incoming data bits and prior encoded data bits, generating an encoded data stream (36) that includes a data transition only when a prescribed correlation is noted amongst the examined bits. The modulator modulates a carrier signal (34) with the encoded data stream, causing a phase reversal of the carrier at each data transition of the encoded data stream. The transmitting coil drive circuit applies the modulated carrier (38) to the transmitting coil. The receiver includes a receiving coil (22) and associated amplifier (24) and bandpass filter (26) for detecting the transmitted modulated carrier. The bandpass filter is centered at the frequency of the carrier, passing the carrier only when no phase reversals are present. This results in an on-off signal at the frequency of the carrier. An AM detector (28) detects when the signal is present and when it is not, and appropriate decision logic (30) applies a suitable acceptance criteria to the detected signal to define the received binary data.