India finally warms up to crypto: PM says CBDC will strengthen the national economy
After years of resistance towards the cryptocurrency, India has announced its launch of its own Central Bank Digital Currency (CBDC) as early as this year. India’s Prime Minister, Narendra Modi, has expressed positive sentiments towards the digital rupee and has said it will strengthen India’s economy.
“The digital rupee will be the digital form of our physical rupee and will be regulated by the RBI. This will be such a system that will enable and exchange of physical currency with digital currency,” the Prime Minister said at a virtual symposium.
“Central Bank Digital Currency will strengthen the digital economy… If anyone makes a payment in digital currency, you will be able to change it to cash,” he said.
With the introduction of this CBDC, the Reserve Bank of India (RBI) now joins the growing number of national banks around the world that are exploring the uses and benefits of CBDC. According, to the Atlantic Council thinktank, 87 countries are in the process of working on a CBDC.
If the RBI finalises the digital rupee this coming financial year, India would become one of the first major global economies to introduce a national digital currency.
“The digital rupee will revolutionise the fintech sector by creating new opportunities and lessen the burden in handling, printing, logistics management of cash,” Prime Minister Modi said.