Budget 2022: RBI to Introduce Blockchain-Based Digital Rupee in 2022-2023
Feb. 1, 2022India’s own Digital Currency Introduced
The Digital Rupee or theCentral Bank Digital Currency(CBDC) is another step in the Digital India initiative and is aimed tomake thecurrency management system more streamlined and inexpensive.
It is said that the CBDC has its own set of perks and will lower people’s dependency on cash, reduce settlement risks, and will also help the government get high seigniorage (profit made by a government by issuing currency) on it due to lower transaction costs. Plus, a blockchain-based digital rupee can also mean a “morerobust, efficient, trusted, regulated, and legal tender-based payment option,” as suggested by Pankaj Chaudhary, who is the minister of state in the Finance Ministry.
However, its security and other issues can’t be fully neglected, and these will be carefully looked into before the official rollout of the digital rupee later this year or early next year.
This announcement comes amidst therecent rumors, which suggested that the Indian Government will soon introduce a newcrypto bill for theregulation of cryptocurrency in India. It was supposed to be tabled during the winter session of the Parliament but that did not happen. The crypto bill is said to ban private cryptocurrencies, introduce an RBI-led regulatory body, and more. It remains to be seen when the bill will take shape.
What are your thoughts on India’s own blockchain-based digital rupee? Let us know your thoughts in the comments below!
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