To further strengthen India’s decision to introduce a central bank digital currency (CBDC) In 2022-23, the Central Bank of India (RBI) proposed a three-stage phased implementation to roll out CBDCs “without any disruption” in the traditional financial system.
In February, while discussing the Budget for 2022, India’s Finance Minister Nirmala Sitharaman spoke of launching a digital rupee to give a “big boost” to the digital economy. in the annual report exposure The Central Bank of India on Friday revealed that it is exploring the pros and cons of introducing a CBDC.
Based on this requirement, RBI is currently examining various design elements of CBDCs that can coexist within the existing fiat system without any disruption. The Indian Finance Bill 2022, which mandates the introduction of a 30% cryptocurrency tax on unrealized gains, also provides a legal framework for launching a digital rupee:
“The Central Bank proposes to adopt a gradual approach to the introduction of CBDCs, step by step through the stages of Proof of Concept, Pilot and Launch.”
The project is in the proof-of-concept stage, in mid-2022, with the RBI in the process of verifying the feasibility and functionality of launching a CBDC.
Earlier this month, on May 17, officials of the Reserve Bank of India took a stand against cryptocurrency adoption, citing the risks of “dollarisation” of the Indian economy.
As Cointelegraph reported based on the Economic Times investigation, top RBI officials, including Chairman Shaktikanta Das, have raised concerns about the dominance of the dollar in the crypto world. An unnamed official said:
“Almost all cryptocurrencies are denominated in dollars and issued by foreign private entities. This could eventually lead to dollarization of a part of our economy, which would be against the sovereign interest of the country.”
“that [criptomoedas] This would seriously undermine the RBI’s ability to set monetary policy and regulate the country’s monetary system,” he said.