Digital currency: We see clear advantages in central bank driven digital currency: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Tuesday said the ‘digital rupee’ is a cautionary call taken in consultation with the Reserve Bank of India (RBI) and the government sees clear benefits in the central bank-run digital currency. The minister was speaking at the annual conference of the India Global Forum here.

“It was a conscious call taken in consultation with the central bank- the Reserve Bank of India… we want them to design the way they want to do it, but this year we expect to come out of the currency. Central The bank itself,” Sitharaman said in response to a question on the digital rupee.

“We see clear benefits in a central bank-operated digital currency, because in this day and age, bulk payments happen between countries, large transactions between institutions and large transactions between each country’s central banks—all with digital currency. better capable,” she said.

When asked about regulating the crypto sector, the minister, unwilling to regulate or ban it by the government, said that after consultations, the government would talk about it.

“Consultations are on….Anyone interested in this domain is welcome to participate, once the consultation process is duly completed, the Ministry will probably sit down and consider it, which is necessary as we need to ensure that The executive requires that we are not exceeding any legal requirement, after which we will come out with our position on this.”

Asked if she sees a future for crypto in India, she said, “Many Indians see a lot of future in it, and so I see revenue potential in it.”

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Speaking on the Budget for 2022-23 presented by him recently, the Minister said that the reference of ‘Amrit Kaal’ in the budget is for greater digitisation, greater technology.

He said, “It is going to be a challenge to infuse technology into the country in every aspect of our business, because we are also labour-rich, in that sense intensively skilled, semi-skilled, partially skilled, high-tech skilled youth galore. So how are we going to make these two sit side by side without hurting each other, that’s where this budget is important.”

Stating that 75 Digital Banking Units (DBUs) have been announced in this budget, Sitharaman said that India needs them as the country is at a stage where to move through a nationalized banking network for 75 years. Despite this, banking and financial inclusion has not been done. As much as we wanted them to be.

“The announcement of DBU simply means that we are looking for people who want to set it up and we (government) will be with them,” he said. For this businesses and facilities need to be provided.

Highlighting that the way an economy like India addresses its demand side issues, it is also to look at the lowest layer of our population which has many disadvantages, the minister said that there is a need to ensure That they do not go hungry, are unsure about the food requirements for their families, and meet their emergency expenses such as health.

“The demand side is being addressed in ways that directly make a difference to the daily livelihood of the individual…..” he added.

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