Central Bank Digital Currency or CBDCs have captured the imagination of central banks around the world. The Reserve Bank of India RBI recently launched the pilot digital rupee' project and reports suggest that it may expand the project based on the learnings from the current pilot. Governor Shaktikanta Das' recent statement on CBDC adoption indicates that the digital rupee' may get a boost.
Digital currencies are the future of money, and adoption can help save logistic and printing costs, he said at a recent event.
According to Kamlesh Nagware, CTO at Snapper Future Tech, I think CBDC will be a topic of discussion in this year's budget. He believes that Finance Minister Nirmala Sitharaman may announce measures to enable offline, cross-border payment and digital asset ecosystem for CBDCs.
The Government of India is a voter of the CBDCs. In her last speech, Ms Sitharaman said that the digital rupee will lead to a more efficient and cheaper currency management system.
CBDCs are the digital version of the official currency that is backed by the central bank. They are often backed by the digital rupee, as is the case with the digital rupee.
In the CBDC trial phase, 16,000 users made e-rupee transactions in a single month. Amogh Tiwari, Founder of DayFi, believes that the beginning is excellent and holds enormous potential for the future of e-rupee.
The Ministry of Electronics and Information Technology will release a National Strategy on Blockchain'' in December 2021 and experts believe that it's going to get a lot of momentum in the coming years. This report mentions the idea of a government-backed digital currency wallet for transactions in the farm sector.
According to Mr Tiwari, "We expect proper allocation for the use ofBlockchain in Indian infrastructure like cargo, finance, digital documents, etc. in this year's budget.
CBDCs are considered a safe, trustworthy and transparent use case of the technology, which is the most well-known use case of the technology. Any discussion on CBDCs is incomplete without comparison with the criptocurrencies that are also run on the principles of the blockchain.
The future of the Indian criptocurrency market continues to be in limbo with the RBI governor calling it nothing but gambling while the Finance Minister seeking an outright ban and the Finance Minister calling for an outright ban on the currency.
There is no relation between criptocurrency and CBDC. Mr Nagware says that the government will focus on the latter as an alternative. Mr Tiwari says that CBDCs are a significant step in the adoption of the digital ledger.
Both believe that the digital rupee will help in larger adoption and mainstreaming of digital currencies in general across the country. The government and stakeholders could have a good understanding of digital currency and digital assets because of the e-Rupee, which will help to build stronger regulations, says Mr Nagware.
By 2032, India will add $1 trillion to its economy by adopting digital assets like CBDCs and otherBlockchain-backed assets, according to one estimate.