New Delhi: Minister of Finance Nirmala Sitharaman on Monday said discussions regarding the digital currencies supported by the central bank have occurred with reserve banks and decisions will be taken after deliberation.
Sitharaman in his budget speech on February 1 has announced that digital rupees or the central bank’s digital currency (CBDC) will be issued by the RBI in the coming fiscal year.
He also announced the government would collect 30 percent of taxes on profits made from other personalized digital assets from April 1.
Reply to questions after overcoming the RBI’s main centramat board here on Monday, Sitharaman said the central bank and the council government regarding the digital currency.
He said discussions with RBI regarding CBDC occurred before the announcement of the budget, and they continued.
RBI Governor Shaktikanta Das added that like some other problems, this particular problem was internally discussed between the RBI and the government.
“Whatever the points we have, we discuss with the government,” he added.
CBDC is a digital or virtual currency but not comparable to the personal virtual currency or cryptocurrency that has mushroomed over the past decade.
Personal virtual currencies do not represent someone’s debt or liabilities because there are no issuers.
They are not money and of course not a currency.
Last week, the DAS said the central bank did not want to rush and carefully examined all aspects before the introduction of CBDC.
The trend and progress of banking in India’s report, released by the RBI in December last year, said that given the dynamic impact of CBDC in making macroeconomic policies, it is necessary to adopt basic models at first, and test comprehensively so that it has a minimal impact.
on monetary policy and banking system.
The progress of payment in India will provide a useful backbone to make sophisticated CBDC available for its citizens and financial institutions, said.