The Reserve Bank of India will introduce digital rupee based on blockchain technology in 2022, Finance Minister Nirmala Sitharaman announced on Tuesday while presenting the Union Budget 2022-2023. RBI is expected to use blockchain technology in introducing what is popularly called Central bank digital currency (CBDC). Digital rupee is expected to give a boost to India’s economy and will help in promoting blockchain technology ecosystem in the country.

“Introduction of a central bank digital currency to give a boost to the economy. Digital currencies using blockchain and other technologies to be issued by the RBI. This move will help promote the blockchain ecosystem in the economy. The anomaly over use of unregulated digital currencies appears to have been set to rest with this proposal with the regulation powers given to the RBI,” Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP told media.

(With inputs from agencies)