The Minister for Finance & Corporate Affairs Nirmala Sitharaman has announced the introduction of Digital Rupee to be issued by the Reserve Bank of India (RBLI) starting 2022-23. Presenting the Union Budget 2022-23 in the Parliament, the Finance Minister said that the Central Bank Digital Currency (CBDC) will give a big boost to digital economy. Digital currency will also lead to a more efficient and cheaper currency management system, the minister stated. The Digital Currency will use block chain and other technologies.
What is block chain technology
A block chain is a decentralized ledger of all transactions across a peer-to-peer network. The use of block chain technology allows participants to confirm transactions without a need for a central clearing authority.
Digital banking units
In view of the growing digital banking, digital payments and fintech innovations, Sitharaman said that government is continuously encouraging these sectors to ensure that the benefits of digital banking reach every nook and corner of the country in a consumer-friendly manner. Taking forward this agenda, and to mark 75 years of independence, the Finance Minister announced that it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by scheduled commercial banks.
The Finance Minister assured that the financial support for digital payment ecosystem announced in the previous Budget will continue in 2022-23. This will encourage further adoption of digital payments. There will also be a focus to promote use of payment platforms that are economical and user friendly, she said.
Wait is over
“The industry was waiting for the government to recognise crypto technology and innovation. Today, it is the beginning of a revolution when the government has itself announced the launch of digital cryptocurrencies. We, as an industry, have taken a step ahead towards adoption of digital currencies. Yes, currently taxation imposed is a little on the higher side, but the industry which was already growing rapidly in the absence of regulation, will now thrive with the government’s clear support,” said Kumar Gaurav, Founder & CEO of Cashaa.