Budget 2022 - RBI to Issue Digital Rupee Based on Blockchain Technology

Finance Minister Nirmala Sitharaman by presenting her fourth budget on 1st Feb 2022 said that the central Bank digital currency (CBDC) will be introduced by the Reserve Bank of India (RBI) in 2022. The digital rupee issued by RBI will use blockchain and other technologies starting from Fy 2022-23.

She also added that the introduction of CBDC will give a big boost to the digital Economy. Digital currency will lead to cheaper and efficient currency management.

The FM further added that the CBDC will further enhance India's status as a digital economy given its world-class digital payments system. The CBDC has many significant benefits, such as reduced settlement risk, reduced dependency on cash, along providing robust, trusted, regulated, and Legal Tender-based payments option. However one can not ignore the risks associated with it.