Union Budget 2022: Digital rupee based on blockchain tech to be introduced in FY23 by RBI, says FM Sitharaman
Categories: Crypto News
The Reserve Bank of India will introduce digital rupee based on blockchain technology in the upcoming fiscal year 2022-2023, Finance Minister Nirmala Sitharaman announced on Tuesday while presenting the Union Budget. RBI is expected to use blockchain technology in introducing what is popularly called Central bank digital currency (CBDC). “Introduction of a central bank digital currency will give a big boost to the digital economy. 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 technology by the Reserve Bank of India starting 2022-2023,” Sitharaman said in her speech at the Budget session. Digital rupee is expected to give a boost to India’s economy and will help in promoting blockchain technology ecosystem in the country. “This move will help promote the blockchain ecosystem in the economy. The anomaly over use of unregulated digital currencies appears to have been set to rest with this proposal with the regulation powers given to the RBI,” Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP told Financial Express Online. “Digital rupee to be issued by the RBI is likely to result in reduced printing costs, decreased settlement risks, avoidance of time zone issues, and cost-effective payment system,” Sunil Gidwani, Partner at Nangia Andersen said.