The Reserve Bank of India (RBI) is aligning its central bank digital currency (CBDC) design with monetary policy objectives and financial stability, the central bank said in its annual report.
See related article: Report: Stablecoins, CBDCs may not resolve financial inclusion, international remittance challenges
Fast facts
- Finance Minister Nirmala Sitharaman announced in February the RBI will be developing a blockchain-based digital rupee.
- India’s Finance Bill, 2022, included an amendment to the RBI Act, 1934, to provide a legal framework for the upcoming digital rupee.
- India has discouraged digital asset investments by imposing a 30% tax on cryptocurrency income, while senior central bank officials have called for a ban on the assets.
- A vibrant and active cryptocurrency ecosystem can present alternative payment methods to a nation’s fiat currency.
See related article: Crypto crash justifies RBI’s stance: central bank chief