India aims to roll out digital currency by next year: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman (File Image)

Finance Minister Nirmala Sitharaman said that India aims to introduce digital currency by 2023.

"The government and RBI are looking into its several commercial use purposes and not just financial inclusion, which is largely achieved through the JAM trinity (Jan Dhan-Aadhaar-Mobile)," she said.

Responding to queries, FM Ms @nsitharaman stated that India aims to introduce #digitalcurrency by 2023. She added the govt along with @RBI is looking into its several commercial use purposes and not just financial inclusion which is largely achieved through the JAM trinity. pic.twitter.com/V8fh9jR5Qp

— FICCI (@ficci_india) April 27, 2022

The minister also said the government maintains a consistent digital push across all industries.

"Central bank digital currency, digital banks, and digital university were announced in the Union Budget. There is a continuous digital nudge by the government across sectors," Sitharaman said.

In the budget, she had said that the introduction of digital currency will give a big boost to the digital economy.

"Digital currency will also lead to a more efficient and cheaper currency management system. It is, therefore, proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23," Sitharaman had said.

The digital rupee blockchain, being developed by the Reserve Bank, would be able to trace all transactions, unlike the current system of mobile wallet offered by private companies.

Sitharaman earlier had said India will take a considerate decision on regulation around the virtual currency, and "the decision on crypto will not be rushed through".