RBI to unveil first ever Indian digital currency in FY23

New Delhi, Feb 2 (KNN) The Reserve Bank of India (RBI) will launch a digital currency using blockchain and other technologies in FY23 announced Finance Minister Nirmala Sitharaman in her union budget speech on Tuesday.

“Introduction of digital rupee will make the currency management more economical and efficient,” she stated.

Currently there is no clarification on this topic as no formal bill is in place yet, hence whether India will get its first ever digital currency in FY23 remains doubtful.

A central bank digital currency is the legal tender issued by it in a digital form and is same as fiat currency and is exchangeable one-to-one with the fiat currency, only different in form.

According to Bank for International Settlements (BIS) survey 2021 it was found that 86 per cent of central banks were researching the potential for CBDCs, 60 per cent were experimenting with the technology and 14 per cent were deploying pilot projects.

In December 2021, the central government had decided to not ban cryptocurrencies rather put them under SEBI regulation and was proposed that it will be renamed as crypto-asset. (KNN Bureau)