Nirmala Sitharaman, India’s finance minister, revealed last month that the Reserve Bank of India will deploy a digital rupee sometime in the fiscal year 2022-2023.
India will become one of the largest economies to launch a central bank digital currency if the bank follows through on its intentions.
The Indian government, echoing the minister’s statement, told parliament on Tuesday that it has no plans to introduce cryptocurrencies that would be regulated by the RBI.
Officials stressed that India’s CBDC, which the RBI has stated will be launched this year, is “a digital representation of traditional paper currency.”
CBDC To Lift India’s Digital Economy
According to Sitharaman, the establishment of a CBDC will bolster the digital economy significantly. Additionally, he said that digital currency will result in a more efficient and cost-effective currency management system.
“It is therefore proposed to launch the Digital Rupee, which would be issued by the RBI beginning in 2022-23,” he continued.
CBDCs are central bank-issued digital tokens akin to cryptocurrency. They are pegged to the country’s fiat currency’s value.
