RBI is currently working towards a phased implementation strategy for introduction of CBDC and examining use cases that can be implemented with little or no disruption: MoS Finance
RBI is currently working towards a phased implementation strategy for introduction of CBDC and examining use cases that can be implemented with little or no disruption: MoS Finance
Government, Minister of State for Finance Pankaj Choudhary have no plans to introduce cryptocurrency informed to Rajya Sabha on Tuesday.
He said in a written reply that currently, cryptocurrencies are unregulated in India.
“RBI does not issue cryptocurrencies. Traditional paper currency is a legal tender and is issued by RBI in accordance with the provisions of the RBI Act, 1994. A digital version of traditional paper currency is called a Central Bank Digital Currency (CBDC), ” They said.
RBI is currently working towards a phased implementation strategy for the introduction of CBDCs and is examining use cases that can be implemented with little or no disruption, he said in another reply.
He added that the introduction of CBDCs has the potential to provide significant benefits such as less dependence on cash, higher charge due to lower transaction costs, etc.
Stating that there has been a decline in the printing of notes over time, he said notes worth ₹4,378 crore were printed during 2019-20, which declined to ₹4,012 crore in 2020-21.
Replying to another question, he said, there are many aspects involved in the financial health of the country.
“Stable stock market with well functioning and sophisticated market infrastructure is an indicator to assess the financial health of the country. The stock market is an indicator of economic growth in the medium to long term as the share prices are the future corporate earnings. But reflect the market expectation/ profitability and hence the underlying confidence in the economy,” he said.
However, he said, in the short term, stock markets are mostly driven by economic and geopolitical events.
Exchanges levy exchange transaction fee on the broker, which can be passed on to the clients, he said, adding that the transaction fee is mentioned in the contract note issued by the broker to the client.
He said the taxes levied on the sale and purchase of shares, including the taxes levied by the exchanges, have been mentioned in the contract note issued by the broker to the clients at the end of each trading day.