Central Bank Digital Currency (CBDC):
The Reserve Bank of India (RBI) is in the process of implementing the Central Bank Digital Currency (CBDC) in a phased manner for wholesale and retail segments, an official said.
- The introduction of CBDC was announced in the Union Budget 2022-23, by Finance Minister Nirmala Sitharaman and necessary amendments to the relevant section of the RBI Act, 1934 have been made with the passage of the Finance Bill 2022.
- The passage of the bill has enabled the RBI to conduct a pilot and subsequent issuance of CBDC.
- The RBI is also working on phased implementation of a central bank digital currency (CBDC) in both wholesale and retail segment.
- CBDC is a digital or virtual currency but it is not comparable with private virtual currencies or cryptocurrency that have mushroomed over the last decade. Private virtual currencies do not represent any person’s debt or liabilities as there is no issuer.
