At the Union Budget, Finance Minister Nirmala Sitharaman announced that the government was considering introducing its very own Central Bank Digital Currency (CBDC), or in the case of India, a digital rupee, by the year 2023. For most observers, the announcement seemed to be a bouncer of sorts. After all, what would be the use case for a CBDC in India at this point in time, when basic financial inclusion itself, let alone digital banking, has not hit the sweet spot as far as the masses are concerned.
As per a BIS survey of central banks conducted in 2021, 86% of the institutions were actively researching the potential for CBDCs, while 60% were experimenting with the technology and 14% were deploying pilot projects. It may be recalled that barring China, no other major economy has conducted extensive trials on the implementation of CBDCs. Singapore, which was following closely on the heels of China, seems to have put on hold its plans of issuing a CBDC.
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As per a BIS survey of central banks conducted in 2021, 86% of the institutions were actively researching the potential for CBDCs, while 60% were experimenting with the technology and 14% were deploying pilot projects. It may be recalled that barring China, no other major economy has conducted extensive trials on the implementation of CBDCs. Singapore, which was following closely on the heels of China, seems to have put on hold its plans of issuing a CBDC.
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