Prime Minister Narendra Modi on Wednesday said that the proposed “digital rupee” announced in the budget will open up new opportunities for the fintech sector and boost digital economy.
“There is also a lot of discussion about central bank digital currency in today’s newspapers. This will give a big boost to the digital economy. This digital rupee, which is our physical currency now, will have a digital form and it will be controlled by RBI. It can be exchanged with physical currency. Digital rupee will open up new opportunities for the Fintech sector,” said Mr Modi while addressing BJP workers and leaders on budget 2022.
Finance minister Nirmala Sitharaman had made the announcement of a digital currency to be governed by RBI in the union budget on Tuesday.
She had said that the RBI will issue a digital rupee in the next financial year, adding that the Central Bank Digital Currency (CBDC) will give a big boost to the digital economy.
The finance minister said the digital currency will also lead to a more efficient and cheaper currency management system, which will be based on blockchain and other technologies.