RBI to launch blockchain-based digital currency next fiscal: FM

Finance Minister Nirmala Sitharaman on Tuesday announced that the Reserve Bank of India (RBI) will introduce its digital currency in the new financial year.

Digital currency will lead to a more efficient and cheaper currency management system, the Finance Minister said during her budget speech in Parliament.

"It is, therefore, proposed to introduce digital rupee using blockchain and other technology to be issued by the Reserve Bank of India starting, 2022-2023," she added.


The key point of digital currency, blockchain and the crypto assets was completely missed in the economic survey present a day earlier.

Digital currency seems to have finally caught the government's attention, said Partner & Leader, Indirect Taxes at BDO in India.

"Introduction of digital rupee using blockchain technology will help in reducing financial and physical efforts required for money management," she adds.

Principal Economic Adviser Sanjeev Sanyal said the government will take a balanced view on the issue of regulation of cryptocurrencies as they have implications on the country's financial stability.

Recently, Prime Minister Narendra Modi, too, has asked for a synchronised global discussion on such regulations at the World Economic Forum.

The Reserve Bank of India is working on a "phased implementation plan" for a Central Bank Digital Currency (CBDC). In the near future, a pilot to test a general-purpose digital currency is possible, CapitalVia Global Research.

"The central bank is weighing many factors related to the planned CBDC's scope and regulatory structure, which would likely coexist with cash and digital payment methods," it added.