The CBDC to Improve the Country’s Digital Economy: PM Modi

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Key Takeaways:

  • India’s Prime Minister, Narendra Modi, expressed his support for central bank digital currencies (CBDCs). 
  • He believes they will help the economy in the next few years.
  • The e-rupee, according to Prime Minister Narendra Modi, will modernize India’s fintech network and improve the economy.

India’s Prime Minister spoke on central bank digital currencies and the benefits they could give to the country’s monetary network during his most recent speech.

Nirmala Sitharaman, India’s Finance Minister, announced earlier this week that the central bank will launch its CBDC in the coming fiscal year (running between April 1 and March 31). The politician, like Modi, expects the product to provide the local monetary system a “significant boost.”

According to PM Modi, the digital rupee will make internet payments safer and speedier. Furthermore, they have the potential to transform the fintech sector by creating new opportunities and improving the global economy: 

“This will also make the development of global digital payment systems easier.”

Locals would be able to swap the CBDC for cash because it will be the digital equivalent of India’s national currency, according to PM Modi. The Reserve Bank of India would also keep a close eye on it.

One of the reasons why India’s political leader supports CBDCs is that they will be controlled, it is safe to assume. He recently urged for the formation of a global collaboration to place private cryptocurrencies under a comprehensive regulatory framework.

PM Modi was mostly concerned about bitcoin. Furthermore, the absence of laws may “spoil” future generations. Last month, he reaffirmed his position on the subject, saying:

“Cryptocurrency is an illustration of the types of issues we face as a global family in the face of a shifting global order.” To combat this, every nation and global agency must take coordinated and coordinated action.”

Conversing at the BJP’s ‘Atmanirbha Arthavyavastha’ (self-reliant economy) symposium, he claimed the central bank’s digital currency, or digital rupee, will make online payments more secure and risk-free, as well as enhance the digital economy in the coming years.

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Chetna Prakash