Cryptocurrency: India may soon have its own digital currency

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• Nov 29, 2021 | moderator

New Delhi: After multiple review meetings and discussions with experts and other stakeholders on the digital currency, the government of India is looking forward to a digital form of currency in India. Replying to a question regarding the Central Bank Digital Currency or the CBDC, the ministry of finance said that it has received a proposal from Reserve Bank of India (RBI) in October, 2021 for an amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form.

The Centre said that the CBDC has the potential to provide significant benefits, such as reduced dependency on cash.

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On the first day of the Winter Session of the Parliament, the government received questions regarding the looming ban of cryptocurrency and the RBI’s plans to introduce an official digital currency. It asked whether the government has received any proposal to introduce Central bank Digital Currency in the country. It also asked for the details of the proposal and the plans to introduce digital currency.

To this, minister of state in the finance ministry, Pankaj Chaudhary replied in written note, “Central Bank Digital Currency (CBDC) is introduced by a Central Bank. Government has received a proposal from Reserve Bank of India (RBI) in October, 2021 for amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form. RBI has been examining use cases and working out a phased implementation strategy for introduction of CBDC with little or no disruption,” he said.