The RBI proposes to introduce its Central Bank Digital Currency (CBDC) in FY 22-23 in a phased manner. To begin with, it will be introduced for use by wholesale business, and will be available for use by retail sector after thorough scrutiny. The currency will be designed in such a way that it does not remain anonymous.

India made its own intent of having CBDC clear in the Budget proposals of 2022. It is going to give a big boost to digital economy. Though CBDC is a digital or virtual currency, it is different from private cryptocurrency since it is backed by and issued by a sovereign state. Private virtual currencies do not represent any person’s debt or liabilities, as those have no issuer.

India’s virtual currency, a Digital Rupee, may use blockchain and other technologies. The RBI Act has been amended to facilitate this introduction.

Financial Stability Board (FSB), Basel with members of some of the world’s biggest economies including India is coming up with draft global cryptocurrency regulation. This could be adopted by all members.