India’s ‘Digital Rupee’ will entail use-cases for an array of commercial purposes, because that is what the country is aiming at with its central bank digital currency (CBDC). Nirmala Sitharaman, India’s finance minister has noted that the Digital Rupee will expand payment options for Indians, while also expanding government’s efforts for bringing-in financial inclusion. India’s CBDC, that was first announced in February, is expected to come into circulation by 2023. It will be backed and regulated by the Reserve Bank of India (RBI).
Sitharaman was speaking during a roundtable conference on “Investing in India’s Digital Revolution” that was recently held in San Francisco, US. The event was organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and was hosted by the US-India Strategic Partnership Forum (USISPF).
“The government and RBI are looking into its several commercial use purposes and not just financial inclusion,” the Indian finance minister reportedly said.
Sitharaman claimed that Indian government’s JAM trinity (Jan Dhan-Aadhaar-Mobile) has already been helping Indians from around the nation to join India’s economic system.
With the CBDC, India is aiming at boosting its digital economy.
“Digital currency will lead to a more efficient and cheaper currency management system,” Sitharaman added.
The work on Digital Rupee is underway and the government of India does not wish to rush through its development and roll-out processes.
In April, RBI Governor T Rabi Sankar had said a nuanced and calibrated approach is essential for launch of India’s maiden digital currency as it would have various implications for the economy and monetary policy.
Meanwhile, India is also working on drafting laws around the virtual assets sector that may be presented before the parliament later this year.
The country, for now, is not looking to adopt any cryptocurrency as a legal tender.