By early 2023, India will have its digital currency

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According to a senior government official, India’s own official digital currency will debut in early 2023 and will be comparable to any of the existing private company-operated electronic wallets, with the distinction that it will be backed by the government.

Finance Minister Nirmala Sitharaman announced in her budget address last week that a central bank-backed ‘digital rupee’ would be presented soon.

According to a prominent government insider who did not want to be identified, the RBI’s digital money will be numbered in units, much like every fiat currency.

“The old currency will be combined with the digital rupee units. It wouldn’t be all that different from fiat money. In some ways, it’d be a government-mandated electronic wallet, as it’d be more like an electronic version of fiat money.” according to a reliable source.

According to the source, the RBI has stated that the digital rupee will be available by the end of the next fiscal year. Unlike the existing system of mobile wallets offered by private companies, the Reserve Bank’s digital rupee blockchain will be able to track all transactions.

“People currently send money to a private company that stores it on their behalf and pays to a merchant when there is any transaction using electronic wallets offered by private corporations,” the source stated.

If money is transferred to a private firm’s e-wallet, the money is also subject to the company’s credit risk, in addition to any fees imposed by the company.

“I’ll keep my money in my phone instead of carrying this wallet.” the insider explained.           

Finance Minister Nirmala Sitharaman stated in the 2022-23 Budget that the launch of Central Bank Digital Currency (CBDC) will provide a significant boost to the digital economy.

“Furthermore, the use of digital currency will result in a more efficient and cost-effective mechanism for managing currency. As a result, the Reserve Bank of India is considering issuing a Digital Rupee around 2022-23, based on blockchain and other technologies.” The ministry claims that.

The rules governing this Central Bank Digital Currency (CBDC) are still being worked out.

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