Minister of State for Finance has informed that there is no plan to introduce cryptocurrency by the government. Currently, cryptocurrencies are unregulated in India.
“RBI does not issue a cryptocurrency. Traditional paper currency is a legal tender and is issued by RBI in terms of provisions of RBI Act, 1994. A digital version of traditional paper currency is called Central Bank Digital Currency (CBDC),” he said.
As, it had been reported earlier that government will launch RBI-backed digital currency soon. Regarding this minister said, “RBI is currently working towards a phased implementation strategy for the introduction of CBDC and examining use cases that could be implemented with little or no disruption.” The introduction of CBDC has the potential to provide significant benefits such as reduced dependency on cash, higher seignior age due to lower transaction costs, etc., he added.
Further, he informed that printing of notes has declined over a period of time, during 2019-20 notes worth Rs 4,378 crore were printed which came down to Rs 4,012 crore in 2020-21.