India announces plans to launch national blockchain-based digital currency

February 3, 2022 India iGaming & Gambling

Digital rupee could launch as soon as this year
Nirmala Sitharaman, India’s finance minister, announced on Tuesday that the Reserve Bank of India (RBI) has plans to issue a digital version of the rupee, with pilot projects for a central bank digital currency (CDBC) commencing this year.

Speaking during the Budget 2022 [pdf] session in Parliament, Sitharaman said that the introduction of the digital currency would provide a major boost to the digital economy while also leading to a more efficient and cheaper currency management system.

The minister didn’t say how the digital rupee would operate or appear, but she did say it will be implemented using blockchain and other technologies, and could energe this year.

“It is … proposed to introduce digital rupee using blockchain and other technology to be issued by the Reserve Bank of India starting 2022-2023,” she said. The 2022-2023 financial year begins on April 1st.

CapitalVia Global Research told the Times of India that RBI is “weighing many factors related to the scope and regulatory structure of the planned digital currency, which would likely coexist with cash and digital payment methods”.