India Will Launch Blockchain-Powered Digital Rupee In 2023; Multiple Commercial Usage Planned!

India aims to introduce digital currency by 2023, said Finance Minister Nirmala Sitharaman.

Commercial Use Of Purposes

She said, “The government and RBI are looking into its several commercial use purposes and not just financial inclusion, which is largely achieved through the JAM trinity (Jan Dhan-Aadhaar-Mobile),”.

The government maintains a consistent digital push across all industries, according to the minister.

Further, Sitharaman said, “Central bank digital currency, digital banks, and digital university were announced in the Union Budget. There is a continuous digital nudge by the government across sectors,”.

Digital Currency Testing Commencing

Prior to this, in the middle of the month, the RBI Deputy Governor T. Rabi Shankar said that the central bank is ready to begin testing and running pilot projects of Central Bank Digital Currency (CBDC) now that the government has made it legislatively possible.

That time, Finance Minister Nirmala Sitharaman had announced in the Budget that the RBI will launch CBDC in the present fiscal.

Earlier, Sitharaman had said that the introduction of digital currency will give a big boost to the digital economy in the budget.

Adding, “Digital currency will also lead to a more efficient and cheaper currency management system. It is, therefore, proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23,”.

Presently, digital rupee blockchain, being developed by the Reserve Bank.

With the use of this currency, it would be able to trace all transactions, unlike the current system of mobile wallets offered by private companies.

Crypto Decision Will Not Be Rushed

While talking about the crypto currency earlier, Sitharaman had said India will take a considerate decision on regulation around the virtual currency, and “the decision on crypto will not be rushed through”.

In the mid of April, Union Minister of Finance, Nirmala Sitharaman said that amid the pioneering fintech revolution, the biggest risk of cryptocurrency could be money laundering and its use for financing terror.

Sitharaman said, “I think the biggest risk for all countries across the board will be the money laundering aspect and also the aspect of currency being used for financing terror” in her address at a seminar during the ongoing spring meet of the International Monetary Fund (IMF).

Further adding that “I think regulation using technology is the only answer. Regulation using technology will have to be so adept, that it has to be not behind the curve, but be sure that it is on the top of it. And that’s not possible. If any one country thinks that it can handle it. It has to be across the board”.

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