Digital Rupee To Be Issued Using Blockchain & Other Technologies: FM Sitharaman
New Delhi: Digital rupee will be issued using blockchain and other technologies by Reserve Bank of India (RBI) starting 2022-23, announced FM Sitharaman in Budget 2022 today.
This will give a big boost to the economy, says FM Nirmala Sitharaman while presenting the Budget 2022.
The digital rupee will be a digital depiction of an Indian rupee supported by the RBI.
“Digital currency will also lead to a more efficient and cheaper currency management system. It is therefore proposed to introduce digital rupee using blockchain and other technology to be issued by the Reserve Bank of India starting, 2022 and 2023,” she added.
India is not the only country that is experimenting with a digital legal tender. The digital dollar, e-yuan, and digital euro are some of the projects that various central banks are experimenting with across the world.
Moreover, unlike Bitcoin, which is a cryptocurrency built on the underlying blockchain technology allowing users to remain anonymous, the official digital currency will have the backing of the RBI. It means that the digital rupee is as good as a physical rupee for all transactions. A digital rupee will have the same value as the physical rupee.