India's central bank to introduce digital currency in phases

Tuesday 31 May 2022 14:24 CET | News

The Reserve Bank of India has planned to introduce its digital rupee central bank digital currency (CBDC) in a phased manner, according to

The Reserve Bank of India discussed the plan in its annual report saying that the CBDC needed to be ‘in line with the objectives of its monetary policy, financial stability, and efficient operations of currency and payment systems’. Calling for the adoption of the digital rupee through a graded approach, the CBDC will go through proof of concept and pilot stages before the official launch. 

The central bank has been examining the risks and advantages of a CBDC, and the Finance Bill of 2022 serves as a legal framework for the asset’s launch. The phased introduction of the CBDC is high on the agenda for 2022-23. India’s central bank first announced that it would work on a CBDC earlier in 2022. India’s Finance Minister has also said that she expects the digital rupee to launch later in 2022.

After confirming in 2021 that it would not recognize Bitcoin as currency and also reassuring investors that crypto would not be banned, India has ramped up its intention to regulate the market. First, it imposed taxes on crypto, which many believe is too high. India’s crypto volumes have plummeted since the introduction of the tax scheme.

India believes that there needs to be cooperation internationally for regulation to truly succeed. Instead, India’s lawmakers will take their time to draw a regulatory framework for crypto. Full regulation may take years, but the country’s stance on digital assets is slowly beginning to take shape after years of vacillation has left investors in confusion, beincrypto concludes.

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: RBI, CBDC, Bitcoin, regulation, digital currency
Categories: DeFi & Crypto & Web3
Companies: RBI
Countries: India
This article is part of category

DeFi & Crypto & Web3


Discover all the Company news on RBI and other articles related to RBI in The Paypers News, Reports, and insights on the payments and fintech industry:

Industry Events