Prime Minister Narendra Modi said on Wednesday that India's new blockchain-based digital currency will simply be a virtual version of the current Indian rupee (INR), the country's legal currency. The Reserve Bank of India (RBI), which controls the issuance of this currency, would also govern the digital money, according to Prime Minister Narendra Modi.
Here's the Tweet from BJP about the digital currency
On this day, Modi spoke to his Bharatiya Janata Party (BJP) colleagues on Finance Minister Nirmala Sitharaman's presentation of the Union Budget for 2022-23. The Prime Minister said that the "people-friendly" annual financial statement has made adequate provisions for India's upcoming digital currency, keeping in mind the rapidly changing financial landscape that is increasingly dealing with cryptocurrencies, non-fungible tokens (NFTs), and other forms of digital assets.
Prime Minister Modi explained the nature of this virtual currency, saying that it may be traded for its physical equivalent because the two are identical in value but differ only in appearance. He believes that this currency will help to strengthen the digital economy and the fintech sector.
“In today's newspaper, there has been a lot of discussion about the central bank's digital currency,” said the Prime Minister in his televised address to BJP party workers today. “This will strengthen the digital economy. This ‘digital rupee’ will be the virtual form of our standard physical currency and will be overseen by the RBI. It can be exchanged with physical currency.”
“Post-pandemic, things are meant to change,” he said. “India, too, is seeing itself in a new light. The world's perspective of looking at India has also changed a lot these days. It is imperative for us to take the country forward at a rapid pace by strengthening our economy with the goal of achieving Aatmanirbharta (self-dependency).”
The Prime Minister stated that being self-sufficient is critical for India as a developed nation. He claimed that the country's economy is "continually expanding" in the direction of modernization.
“Digital payments will be regulated, much like standard currency is regulated by the Reserve Bank of India (RBI),” the Prime Minister said. “Such payments are more secure, efficient, and safe, and goes a long way towards paving the way for a global digital payments infrastructure.”
Finance Minister Nirmala Sitharaman had launched the 39.45 lakh crore budget the day before, announcing that India's own digital currency would be available soon. The RBI will issue the currency in 2022-23, utilizing blockchain technology, according to the minister, adding that it will strengthen the digital economy.
In July of last year, the RBI announced that it was developing its own digital money. The Central Bank Digital Currency (CBDC), as it was dubbed by RBI deputy governor T Rabi Sankar, will be the same as a fiat currency and will be exchangeable one-to-one with it.
CBDC, he added, is not analogous to the private virtual currencies that have exploded in popularity during the last decade. According to Sankar, private virtual currencies are at odds with the historical concept of money.
The Reserve Bank of India has stated several times that cryptocurrencies such as BitCoin, Ethereum, and Dogecoin, among others, constitute a threat to financial stability. The central bank has also questioned the worth of cryptocurrencies, warning investors not to be "lured" by promises of high returns on these digital assets.
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