India’s Central Bank RBI to Adopt ‘Tiered Approach’ to Launch Digital Currency – Regulated Bitcoin News

India’s central bank, the Reserve Bank of India (RBI), has proposed a “tiered approach” to launching the country’s central bank digital currency (CBDC). The RBI also said it was exploring the pros and cons of introducing a digital rupee in India.

RBI on upcoming digital rupee

Reserve Bank of India release Its 2021-22 annual report on Friday. RBI digital currency (CBDC) is one of the many topics discussed in the report.

“The design of a CBDC needs to be consistent with monetary policy, financial stability, and the efficient functioning of monetary and payment systems,” the report elaborated, detailing:

The Reserve Bank proposes a tiered approach to the introduction of a CBDC, working through proof-of-concept, pilot and launch phases.

In addition, the report showed that the central bank “has been exploring [the] Introducing CBDC in India. “

The RBI further detailed that “the appropriate design elements of a CBDC that can be implemented with little or no disruption are under review.”

India’s Finance Minister Nirmala Sitharaman announced the central bank’s plans to launch a digital currency in February when he presented the Union Budget for 2022-23.

The RBI report concluded:

Appropriate amendments to the RBI Act 1934 have been included in the Finance Act 2022. The 2022 Finance Bill has been enacted to provide the legal framework for launching a CBDC.

In April, RBI Deputy Governor T. Rabi Sankar Say The central bank will set out to “launch a CBDC in a very calibrated, graded manner, assessing the impact along the way.”

Meanwhile, the RBI has maintained an anti-crypto stance.Governor Shaktikanta Das warn Last week about investing in the crypto market after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).

In February, the central bank Say This cryptocurrency poses a huge threat to India’s macroeconomic and financial stability.The bank’s deputy governor also statement Banning cryptocurrencies is “most desirable” for India, while regulation is “futile.”

Nevertheless, the Indian government have not decided yet Regarding the country’s cryptocurrency policy, however, crypto income is currently taxed at 30%.Furthermore, a 1% tax deduction at source (TDS) coming into effect in India.

What do you think about how the RBI plans to launch its digital currency? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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