With a vision to upgrade the use of digital currency beyond finance, India is ready to launch its proposed Central Bank Digital Currency (CBDC) in 2023.
The finance minister of India, Mrs. Nirmala Sitharaman informed at an event at FICCI (Federation of Indian Chambers of Commerce and Industry) about the upcoming plans of RBI and the Government of India to use CBDC for other commercial applications. RBI is already looking to the potential of CBDC in both wholesale and retail segments.
“The government and RBI are looking at many of its commercial use objectives and not just financial inclusion, which is largely achieved through the JAM trinity,” The Times of India quoted Sitharaman as saying at an event organized by the Federation of Indian Chambers of Commerce & Industry (FICCI) and US-India Strategic Partnership Forum (USISPF).
Although CBDC will be equivalent in value to fiat currency but it’s form will be purely digital. It would suffice all the basic roles of a currency and will be accepted as a medium of exchange and a store of value.
Mrs Sitharaman also announced at an event prior to this that India will not hurry in its decision of regulating digital currency rather it will follow a considerate view. India would thoroughly look into its use in negative activities like money laundering and terror financing.
The minister also commented that Indian government is open to innovation and progress that can be foreseen in blockchain technology.
“So, our intention is in no way to hurt this (innovation around crypto)…but (we need to) define for ourselves…,” she said.
The government of India is considering the topic of digital currency in a proactive manner. Earlier during her speech at the budget session this year, FM announced that India is working towards the launch of its own digital currency by the end of fiscal year 2022-23. This would not only help India keep itself abreast with the latest innovations in the digital world but also give an uplift to the economy.
