India has announced that they are planning to launch a digital version of the rupee. They will be among the countries that have created a state-backed virtual currency.
Indian Finance Minister Nirmala Sitharaman announced that the central bank is planning to introduce the new currency. It is set to begin in the new fiscal year by April “using blockchain and other technologies”. This is expected to boost India’s thriving digital economy.
Since Prime Minister Narendra Modi withdrew the country’s two largest rupee banknotes in late 2016, digital payments have exploded in popularity in India. Local competitors like Paytm have jumped onboard India’s cashless payments craze. Several of the world’s largest internet corporations, including Google (GOOGL) and Facebook (FB) joined.
Other big economies are moving through with their own plans to introduce virtual versions of their own currencies as well. For the past two years, China has been testing its digital yuan in key cities. Athletes, officials, and media attending the Beijing Winter Olympics this month have only three payment options.
Both Europe and the United States have been looking at the possibility of a digital euro and digital dollar. While both have emphasized the significance of minimizing the financial risk that any e-currency poses.
For years, India has voiced worry about cryptocurrencies and how to effectively manage digital assets. Sometimes even toying with a crypto ban. Last year, a cryptically phrased proposal on the Indian parliament’s website claimed that the government was considering “prohibiting all private cryptocurrencies in India.”