The Prime Minister of India – Narendra Modi – displayed his sympathy towards central bank digital currencies (CBDCs). He believes that they would boost the economy in the years to come.
Modi Is Looking Forward to a CBDC
During his most recent appearance, India’s Prime Minister spoke about central bank digital currencies and the benefits they could provide to the country’s monetary network.
In his view, the digital rupee will make online payment faster and more secure. Additionally, they could revolutionize the fintech sector by creating new opportunities and strengthening the global economy:
“This will also lead to ease in development of global digital payment systems.”
Since the CBDC will be the digital form of India’s national currency, locals would be able to exchange it for cash, Modi explained. It would also be fully monitored by the Reserve Bank of India.
It is safe to say that one of the reasons why India’s political leader is a proponent of CBDCs is because they will be regulated. Not long ago, he called upon establishing a global collaboration that should put private cryptocurrencies into a comprehensive regulatory framework.
Modi’s concerns were focused mainly on bitcoin. He assumed that many criminals would continue using the leading digital asset in their illicit activities without the necessary legislation. Furthermore, the lack of rules could also “spoil” the younger generations. Last month, he reiterated his viewpoint on the matter by saying:
“Cryptocurrency is an example of the kind of challenges we are facing as a global family with a changing global order. To fight this, every nation, every global agency needs to have collective and synchronized action.”
India’s CBDC Arriving Soon
Earlier this week, Nirmala Sitharaman – Finance Minister of India – disclosed that the central bank will introduce its CBDC in the next financial year (running between April 1 and March 31). Similar to Modi, the politician expects the product to give a “big boost” to the local monetary system:
“Digital currency will also lead to a more efficient and cheaper currency management system.”
In 2021, the Reserve Bank of India asserted it would launch trial programs to examine how a potential digital rupee would interact with the economy. The officials aimed to start the experiment by the end of last year but eventually, postponed it for 2022.