Independently, a minister of state from the Ministry of Finance and a Reserve Bank of India official have provided updates on the progress of the central bank in issuing a central banking digital currency (CBDC).
Local media quoted Ajay Kumar Choudhary, RBI Executive Director, as saying during the keynote speech at Wednesday’s PICUP Fintech Conference & Awards.
The RBI is currently working to implement a central bank digital currency (CBDC), in phases. This will be implemented in both the wholesale and retail segments.
Pankaj Chaudhary (minister of state at the Ministry of Finance) said Tuesday to Rajya Sabha that the “RBI” had begun work on a phased implementation of an announcement made in the budget speech 2022-22-23.
Indian Finance Minister Nirmala Sitharaman declared that the country’s CBDC would be launched in the Union Budget 2022-2223. The Finance Bill 2022 was passed to amend the RBI Act 1934 to allow the central banking to issue a CBDC.
T. Rabi Sankar, RBI Deputy Governor, stated that the central bank believes that CBDCs will be able to kill no matter how small the case may be for private cryptocurrency. The central bank and the Indian government refer to private cryptocurrencies as non-state-issued cryptocurrency, such as bitcoin ( TTC) or ether ( ETH). In May, the RBI warned that crypto could result in the dollarization a portion of India’s economy.
Shaktikanta Das , the RBI Governor, stated that Cryptocurrencies pose a serious threat. Any value that is derived from make-believe without any underlying is speculation.
Indian central banks have repeatedly said that cryptocurrency should be banned. The country’s finance minister stated earlier this week to parliament that any legislation for regulation or banning cryptocurrency must be based on significant international collaboration. This includes a thorough evaluation of the benefits and risks of each standard and the evolution of common taxonomies and standards.