With the winter session of Parliament beginning on Monday, November 29, Ministry of Finance In a written reply to a question regarding central bank digital currency Or the CBDC has said that it has received a proposal from the Reserve Bank India (RBI) in October, 2021 to amend the Reserve Bank of India Act, 1934 to expand the scope of the definition of ‘bank note’ to include currency in digital form. The Center said that CBDCs have the potential to provide significant benefits, such as reducing dependence on cash.
On the first day of the winter session of Parliament, the government received questions regarding the imminent ban of cryptocurrency and RBI’s plans to introduce an official digital currency. It asked whether the government has received any proposal to introduce a central bank digital currency.
Country. It also sought details of the proposal and plans to introduce the digital currency.
To this, Minister of State in the Ministry of Finance, Pankaj Choudhary replied in a written reply. Central Bank Digital Currency (CBDC) introduced by a Central Bank A proposal has been received from Reserve Bank of India (RBI) in October, 2021. RBI is examining the use cases and working on a phased implementation strategy to launch the CBDC without any disruption.”
On a question related to the purpose of introducing digital currency and whether any assessment has been done on its impacts, the minister said that the move would have significant benefits.
“The introduction of a CBDC has the potential to provide significant benefits, such as less dependence on cash, higher segregation due to lower transaction costs, lower settlement risk. The introduction of CBDCs is likely to lead to more robust, efficient, reliable, regulated and fiat-tender- based payment option. There are also associated risks which need to be carefully evaluated against the potential benefits,” Choudhary said in response.
“Unregulated cryptocurrencies can destabilize the macro-economy and create large speculative bubbles. To that extent, RBI is right,” ET quoted the source as saying in its report.
The government’s reply comes amid reports that RBI’s central bank digital currency is likely to be included in the government’s upcoming bill to regulate cryptocurrencies during the winter session of Parliament. A report in the Economic Times quoted government sources as saying that the bill was a response to RBI’s concerns about macro-economic stability. The official added that “the government’s response is not to ban cryptocurrencies, but to provide cryptocurrencies through the RBI.”
NS cryptocurrency And the Regulation of Official Digital Currency Bill, 2021, which was notified in the Lok Sabha bulletin a few days ago, seeks to ban all private cryptocurrencies. On top of this, it also wants to introduce a digital currency of its own backed by the Reserve Bank of India. It also proposed “creating a facilitating framework for the creation of an official digital currency to be issued by the Reserve Bank of India”. In addition, it sought to allow “certain exceptions to promote the underlying technology of cryptocurrency and its uses…” the bulletin said.
In August this year, RBI Governor Shaktikanta Das told CNBC that trials for the launch of an official digital currency are likely to begin in December. “I think by the end of the year, we should be able – we will be in a position, probably – to start our first test,” he told the news portal during an interview.
read all breaking news, breaking news And coronavirus news Here. follow us on Facebook, Twitter And Wire,
,