New Delhi: With the onset of the winter session of the Parliament on November 29, the ministry of finance in a written reply to a question about the Central Bank Digital Currency (CBDC) has said that it received a proposal from the Reserve Bank of India on October 2021, to amend the Reserve Bank of India Act, 1934, to include currency in digital form.
On the first day of the session, the government received questions regarding the ban of private cryptocurrencies in India and RBI’s plan to introduce an official digital currency. Further, it asked, did the government received any proposal to introduce Central Bank Digital Currency (CBDC) in the country, besides, asked for details of the proposal and plans to introduce digital currencies.
“Central Bank Digital Currency (CBDC) is introduced by a Central Bank. The government has received a proposal from the Reserve Bank of India (RBI) in October, 2021 for the amendment to the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘bank note’ to include currency in digital form. RBI has been examining use cases and working out a phased implementation strategy for the introduction of CBDC with little or no disruption,” minister of state in the finance ministry, Pankaj Chaudhary replied in a written note.
Will CBCD be like crypto?
Meanwhile, Central Bank Digital Currency (CBDC), will be the digital currency of RBI and it can be used as simple as our rupee. RBI will have control over its transactions. On the other hand, Crypto are decentralized and are not controlled by any bank or government.
On the contrary, RBI Chief General Manager P. Vasudevan pointed out that various implications related to CBCD. He said that we have to be vigilant and see if it can be implemented on a large scale or a small part.
