What is the government's opinion on cryptocurrencies? On this, the Minister of State for Finance informed the House today that the government is considering the possibilities of blockchain technology for the digital economy. He told that the Inter-Ministerial Panel on Cryptocurrencies has clearly said that private cryptocurrencies should be banned. It will be the only digital currency in the country which will be issued by the government.
The Minister of State for Finance said that whatever the Inter-Ministerial Panel will suggest regarding cryptocurrencies, the government will take its decision accordingly. The government will move in this direction only after the panel's suggestion. If any kind of legal proposal is needed for this, then the government will also introduce the law related to it in the House.
Working on RBI's own digital currency
Recently, a report said that the Reserve Bank of India is working fast on bringing its own digital currency. Very soon its pilot testing is also going to start. Talking about the current status of digital currency in our country, RBI has not yet given legal recognition to private cryptocurrencies, but the Supreme Court has also removed the ban on its trading.
Central banks around the world are working
According to a report published in the Economic Times, 86 percent of the world's central banks are currently working on the possibilities of Central Bank Digital Currency (CBDC), while 14 percent of central banks have even started working on the pilot project.
Central bank considering many aspects
RBI Deputy Governor T Ravi Shankar said that we are moving in this direction in a phased manner. Very soon pilot testing will also be done for its use-related information. He said that the Reserve Bank is looking at whether the digital currency will be used in retail or will be used in wholesale. Technology will be centralized or distributed. Will it is issued by RBI itself or will it be issued by different banks. Necessary changes will also have to be made in FEMA, IT Act, Coinage Act, RBI Act to prevent any wrong thing including money laundering. He said that with the introduction of digital currency, the dependence on cash will reduce and the expenditure on printing currency will be curbed.
How will RBI's digital currency be?
Regarding how the CBDC of the Reserve Bank will be, Deputy Governor Shankar said that it will continue to get legal recognition from RBI. The form of this currency will be digital. Apart from this, there will be no change regarding its value. For example, a 10 rupee note and a 10 rupee digital currency, both will have equal value and can also be exchanged without any interruption. At present, apart from RBI, the central banks of countries like China, England, and Russia are also considering bringing such digital currency.