The Government of India has confirmed its plans to launch a 'digital rupee' CBDC, but when is the release date?
After immense contemplation and planning, India has finally given green light to cryptocurrency trading in India. Alongside this, the government laid out a map to introduce Central Bank Digital Currency or CBDC's in the region.
By doing so, it could become the first nation to have integrated CBDCs in its financial ecosystem. But the question is, when is India launching its official CBDC?
When Is India Launching Its Own CBDC?
As per multiple sources, the government of India will be piloting their CBDC project in the fiscal year 2022-23.
On February 1, the finance minister of India, Nirmala Sitharaman announced the launch of India's CBDC project she said will prove instrumental in "boosting the Indian economy."
She added: "Digital currency will also lead to a more efficient and cheaper currency management system."
After immense consideration, India has also green-lighted crypto trading in the region, although the government will impose a 30% tax on income derived from cryptocurrency assets.
What is a Central Bank Digital Currency?
The term Central Bank Digital Currency or CBDCs refers to the virtual form of a fiat currency. A CBDC is generally backed by a central bank and is a digital token of the national fiat currency.
According to Investopedia, a CBDC integration in an economic infrastructure of a country can simplify the implementation of monetary and fiscal policies in the region and promote financial inclusion in the country.
Apart from India, many significant countries in the region are considering launching their independent CBDC projects. Leading countries such as China, the USA, Japan, Russia, and the UK with its Britcoin are considering launching their CBDCs in a bid to promote economic prosperity.
These countries have also reportedly launched the initial test programs to evaluate the credibility of implementing CBDCs.
Aside from nations, private companies such as Facebook and Amazon are also rumoured to be working on digital currencies.