India to launch first ever digital currency in 2023: Report 

Digital currency in India is predicted to witness an exciting phase with the country launching its official digital currency in the upcoming year 2023. According to a government source, this currency will replicate the currently available private company-operated electronic wallets, along with a sovereign-backed facility. 

In the recent budget speech given by the Finance Minister, Shri. Nirmala Sitharaman, announced that a ‘digital rupee’ is soon going to make a debut in the Indian market and will be backed bythe central bank. A top government official also said, “the digital currency issued by the RBI would be numbered in units, just like every fiat currency has an unique number.”

As per the RBI, the digital rupee should be ready by the end of FY23. It’s blockchain would be able to trace all the transactions made and is being developed by the RBI. Furthermore, just as one can use an electronic wallet backed by private companies and transfer money on his/her behalf to a merchant, in this case, If the money is transferred to the e-wallet of a private company, then credit risk of that company is also attached to the money besides charges levied by such companies, explained the official government source. 

During the FY 22-23 budget announcement, the Finance Minister also said that the introduction of digital currency will boost the Indian economy to new heights. There are more discussions and finalisations yet to be made regarding the regulation governing the Central Bank Digital Currency in India (CBDC). CBDC is a virtual currency unlike other private virtual currencies that have proliferated over the recent years.