The Reserve Bank of India (RBI) will launch its digital currency in the new financial year, according to Finance Minister Nirmala Sitharaman.
During her budget statement in Parliament, the Finance Minister stated that digital currency would lead to a more efficient and cost-effective currency management system.
“As a result, it is planned that the Reserve Bank of India produces digital rupees utilising blockchain and other technology beginning in 2022-2023,” she added. The importance of digital currency, blockchain, and crypto-assets was wholly overlooked in the previous day’s economic assessment.
According to BDO India’s Partner & Leader, Indirect Taxes, “digital currency appears to have finally caught the government’s attention.”
“The introduction of a digital rupee based on blockchain technology will reduce the financial and physical effort required for money management,” she adds.
Sanjeev Sanyal, the government’s principal economic adviser, stated that the administration would take a balanced approach to the problem of cryptocurrency legislation because they have ramifications for the country’s financial stability.
At the World Economic Forum, Prime Minister Narendra Modi has requested a worldwide discussion on such policies.
A “phased implementation strategy” for a Central Bank Digital Currency (CBDC) is being developed by the Reserve Bank of India. According to CapitalVia Global Research, a pilot to test general-purpose digital money could be conducted shortly.
“The central bank is considering some aspects connected to the projected CBDC’s scope and regulatory framework, which will most likely coexist with cash and digital payment methods,” it continued.