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No plans to introduce cryptocurrency

March 16, 2022

No plans to introduce cryptocurrency
There is no plan to introduce cryptocurrency by the government, Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha on Tuesday. Currently, cryptocurrencies are unregulated in India, he said in a written answer.

“RBI does not issue a cryptocurrency. Conventional paper money is a legitimate delicate and is given by RBI as far as arrangements of RBI Act, 1994. A digital version of traditional paper currency is called Central Bank Digital Currency (CBDC),” he said.
 
RBI is working towards a phased implementation strategy for the presentation of CBDC and looking at use cases that could be implemented with little or no disruption, he said in another
reply.
 
The presentation of CBDC can possibly give significant benefits, for example, reduced dependency on cash, higher seigniorage due to lower transaction costs, and so on, he added.
 
Printing of notes has declined over a period of time, he said, adding, during 2019-20 notes worth ₹4,378 crores were printed which came down to ₹4,012 crore in 2020-21.
 
Replying to another question, he said, the financial health of the nation includes many facets.
 
“Stable stock market alongside well-functioning and the sophisticated market infrastructure is one indicator to survey a country’s financial health. The stock markets are indicative of economic growth in the medium to long term as the stock prices reflect the market’s expectation on future corporate earnings/profitability and thus the underlying confidence in the economy,” he said.
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