The Reserve Bank has been looking at the pros and cons of introduction of CBDC in India and it proposes to adopt a graded approach to introduction of CBDC.
Finance Minister Nirmala Sitharaman, during her Budget speech, said the digital currency would be introduced by 2023
RBI is currently working towards a phased implementation strategy for the introduction of CBDC and examining use cases that could be implemented with little or no disruption, he said in another reply.
Many countries are now exploring government-backed digital currencies, and the latest one to explore possible uses of digital assets is the US government.
The report said CBDCs are likely to drive efficiencies and effectiveness of a jurisdiction's payments system by ensuring that its users access safe digital money.
As part of the order being signed Wednesday, the Treasury Department and other federal agencies are to study the impact of cryptocurrency on financial stability and national security.
FM Nirmala Sitharaman, said the 'Digital Rupee' is a conscious call taken in consultation with RBI and the govt sees clear advantages in a central bank driven digital currency.
RBI Governor Shaktikanta Das says RBI will do rigorous pilots to ensure cyber security and prevention of counterfeiting.
The digital rupee blockchain, being developed by the Reserve Bank, would be able to trace all transactions, unlike the current system of mobile wallet offered by private companies.
TV Somanathan said just like gold and diamond, despite being valuable, are not a legal tender, private cryptocurrencies too will never be a legal tender.
Resident will soon be able to transact In a digital currency backed by the RBI.
Finance minister Nirmala Sitharaman on Tuesday said that we have controlled the inflation better than the previous government and never let it touch the double digit.
“We consider this move to tax virtual digital transactions as a big positive. Earlier, there were doubts whether such transactions were legal or not.
Crypto exchanges hope that 2022 will be a big year for them as they are also awaiting an upcoming Bill that regulates the market.
In its basic form, a CBDC provides a safe, robust, and convenient alternative to physical cash, depending on various design choices, it can also assume the complex form of a financial instrument.
It also called upon the government to allow persons holding crypto currencies to sell or exchange the same within a short span of time subject to provision of submitting the information to I-T.
As government prepapres to table bill in Parliament, RBI Board discusses CBDC and private cryptocurrency
While the discussion was directed towards implementation strategy for the introduction of Central Bank Digital Currency (CBDC), board members shared their reservations against the private Cryptos.
The RBI had earlier this year announced that it has started work on the CBDC, in line with other major central banks of the world which are looking at a fiat digital currency.
Repeal of farm laws, cryptocurrency regulation: Modi government lists 26 bills for upcoming Parliament session
The Cryptocurrency and Regulation of Official Digital Currency Bill seeks to ban all but a few private cryptocurrencies to promote underlying technologies while allowing an official digital currency.
At the same time, the Reserve Bank of India is looking at issuing its own official digital currency.