India may get its official digital currency as early as 2023. It will be similar to the currently available electronic wallet operated by a private company, but with a ‘Government Guarantee’ attached to it. A top government source gave this information. Finance Minister Nirmala Sitharaman, while presenting the budget for the financial year 2022-23, said last week that a central bank-backed ‘digital rupee’ would be introduced soon.
Indian Digital currency will have a unique number
The source, speaking on condition of anonymity, said the digital currency issued by the Reserve Bank will have unique numerals like the Indian currency. It will not be different from ‘flat’ currency and will be its digital form. In a way, it can be said that this will be a government-guaranteed digital wallet. The units issued in the form of digital currency will be included in the currency in circulation. The source said that the central bank has indicated that the digital rupee will be ready by the end of the next financial year.
The digital rupee blockchain developed by the Reserve Bank will be able to trace all types of transactions. Mobile wallets of private companies do not currently have this system. Explaining this, the source said that people currently transfer money to private companies using the electronic wallets of private companies. This money remains with them and these companies make payments on behalf of customers to merchants, shopkeepers, etc. on any transaction.
Government will provide full guarantee
Whereas in the case of Digital Rupee, the digital currency will be with the people in the phone and it will be with the central bank. It will be transferred from the central bank to any shopkeeper or retailer. There will be a full government guarantee on this. The source said that when money is transferred to the e-wallet of a company, the ‘credit’ risk of that company is also attached to this money. Apart from this, these companies will also charge fees.
