The Reserve Bank of India will soon launch its digital currency, available in both segments, retail and wholesale.
The Central Bank has said to make necessary amendments to the RBI Act, 1934.
The minister of state, the Finance Ministry, and an official from the Reserve Bank of India have issued independent statements regarding the bank’s progress regarding the digital currency.
Ajay Kumar Choudhary, the Executive Director of the Reserve Bank of India, said that the RBI is currently working on the implementation of Central Bank Digital Currency (CBDC) in phases.
In a budget speech in Rajya Sabha, which is the Upper House of the Indian Parliament, the Minister of State for the Ministry of Finance Pankaj Chaudhary confirmed this announcement made by the RBI official saying that the RBI has started to work and is planning to implement the CBDC in phases.
The Minister of Finance Nirmala Sitharaman, in the budget speech 2022-23, said the needed amendments have been made in the RBI Act, 1934 which will allow the central bank to issue digital currency.
According to RBI Deputy Governor T. Rabi Sankar, the RBI believes that CBDCs would kill, referring to Bitcoin and Etherium, the private cryptocurrencies, he said in June.
The RBI likewise cautioned in May that crypto could prompt the dollarization of a piece of the Indian economy. RBI showed its concerns regarding the digital currency earlier in May stating that it might end up dollarizing a chunk of the Indian Economy.
Shaktikanta Das, Governor of the RBI, in a statement earlier this month said digital currencies are “speculations” and “clear danger”.
The country’s finance minister has also shared her views regarding digital currency. Nirmala Sitharaman said, “banning such endeavors could result in loss of international collaborations and other such opportunities”.