The national budget is something a good majority of the citizens look forward to. And the budget presentation for this year came with some interesting new steps the government intends to take in the direction of progress. The Central Bank is gearing up for the introduction of a digital rupee in the year 2022-23. The move is seen as a major boost to the economy. The introduction of the digital rupee will be achieved with the help of blockchain and other technologies. The budget was presented by Finance Minister, Nirmala Sitharaman. Although there hasn’t been any mention of a name for the digital rupee, the finance minister assured that it will be announced soon. Let’s take a look at the finance minister’s words concerning the introduction of the digital rupee,
“The introduction of central bank digital currency will give a big boost to the digital economy. Digital currency will also be a more cheap and efficient currency management system.” The move will be a major milestone for the Government’s “Digital India” program and is hence looked up with a lot of expectation.
The What and Why
Technology has been spreading its wings to scale new heights of progress and development. In that context, digitalization seems like the next default move to ensure that the path to progress is smooth and efficient. And it seems like the Indian Government is taking a major step in the direction with the announcement of the Central Bank digital rupee which is expected to provide a major speed boost to the economy. Another interesting fact is that the optimism surrounding the digital rupee comes at a time when cryptocurrency is looked at with suspicion-tinged glasses by the RBI which had earlier expressed “serious concerns” about the same. The major concern of the RBI with regard to cryptocurrency was that it might become a reason for financial instability.
However, the words of Sanjeev Sanyal hints at the Government taking a rational and balanced view about cryptocurrencies thus making way for smooth navigation.“There are some financial stability issues. But there are also other arguments that are made in terms of innovation and so on. Obviously, a balanced view on this will be taken,” said Sanyal on Monday.
The budget also threw light on the Government’s plan to set up 75 digital banking units in 75 districts. It is a known fact that in the past few years digital banking and payments have seen commendable growth in the country with more and more people adopting it owing to convenience and efficiency. And the Government through its efforts is trying to ensure that the benefits of digital banking aren’t limited to a selected few and that it reaches “every nook and corner in a “consumer-friendly manner.”