Talks on with RBI to Issue Digital Currency, says Nirmala Sitharaman
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Finance Minister Nirmala Sitharaman on Monday said that talks are on with the Reserve Bank regarding the issuance of the digital rupee and brainstorming is going on to take a decision in this regard. It is worth noting that while releasing the budget for the financial year 2021-22, Nirmala Sitharaman had said that in the new financial year, the Reserve Bank will issue a digital rupee. The government has announced to levy 30 percent tax on gains from other digital currencies from April 1.
Talking to the media after the meeting of the Central Board of Directors of the Reserve Bank, Finance Minister Nirmala Sitharaman said that the RBI and the government are together on digital currency. At the same time, Reserve Bank Governor Shaktikanta Das said that like many other issues, talks are going on internally between the central bank and the government on this issue. He said that whatever are the points regarding this, we have discussed them with the government. Last week, Shaktikanta Das had said that the central bank is in no hurry and is reviewing all aspects related to CBDCs.
RBI and government unanimous on digital currency
Can't Compare Digital Rupee and Cryptocurrency
Although CBDC is a digital currency, it cannot be compared with other private digital currencies or cryptocurrencies that have grown rapidly in the recent decade.
Last week, Shaktikanta Das had said that the central bank is in no hurry and is reviewing all aspects related to CBDCs. The report on Trend and Progress of Banking in India, released in December last year, had said that there is a need to adopt a basic model initially, considering the impact of CBDCs on macroeconomic policymaking.