RBI to Introduce India’s Digital Currency by 2023


At the Indian Budget 2022-2023, Union Finance Minister Nirmala Sitharaman spoke of launching India’s digital currency. She suggested that the digital currency will be introduced by the Reserve Bank of India (RBI) and it will be centred around Blockchain technology. Introduction of a digital currency will ensure a “big boost” to the economy, she added.

What Nirmala Sitharaman has to say about the digital currency

Nirmala Sitharaman said that the digital currency will assist in managing the currency system. Along with that, this digital currency will also contribute to a cheaper and more efficient currency management system. she added that in 2022-2023, financial aid of RS. 1 lakh will be given to states to catalyst investments.

RBI to Introduce India’s Digital Currency by 2023 1

Additionally, she outlined plans for a 30% tax on income from sale of digital assets.

China was the first major economy to issue a digital currency

The first digital currency issued by a major economy was China’s digital RMB. Back in September 2021, Tajikistan declared about the creation of a CBDC. This was done with the Fantom Foundation. Also, the first African country to unveil its CBDC was Nigeria. The CBDC was unveiled on 25 October.

With this, India has joined other countries that already have their digital currency.

The Union Minister has also suggested establishing an expert committee that would ensure suitable measures to level up private equity investment and venture capital.