Thursday, December 8, 2022

Reserve Bank of India Set to Launch its CBDC

The hike in the Frequency of digital assets transactions in India’s economy is one of the underlying factors backing the push for the adoption of the nation’s digital Rupee. In view of this, the Reserve Bank of India (RBI) has published a concept note on the launch of a digital Rupee (Central Bank Digital Currency CBDC) soon.

According to the release, the digital form of currency note will provide an additional option to the present options of money. Similar to the other forms of digital money, it also has all the transactional benefits.

Notably, the introduction of the digital Rupee will give a big boost to the digital economy if the country sticks to its plans. By doing so, India would be one of the world’s largest economies to introduce CBDC. 

The Reserve Bank of India intends to introduce the digital rupee in the 2022-2023 financial year which will begin on April 1.

Additionally, the introduction of CBDC to India will allow a range of benefits, such as minimal overall currency management cost, and reduced settlement risk, amongst others. It will also provide the general public with a convenient electronic form of central bank money together with safety. Similarly, entrepreneurs will have a platform to create new products and services.

Recall that earlier this year, India proposed a 30% tax on digital assets as it embraced regulations.

Other countries working on CBDC projects

With the launch of research programs into the benefits of CBDC, several nations position themselves to benefit from the digital advancement the digital currency offers. A few others, on the other hand, have begun to use their CBDC as payments for goods and services.

\Recently, Nigeria added new features to its digital currency dubbed “e-Naira” to allow its citizens to purchase a wider range of goods and services within the country.  The e-Naira was first introduced by the nation’s president back in October last year after it banned commercial banks from participating in crypto activities.

Meanwhile, Australia in partnership with the Digital Finance Cooperative Research Centre (DFCRC) has begun research for its potential CBDC. Also, the Central Bank of the Philippines started putting structures in place for the launch of its CBDC research program.

 

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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