On Wednesday, India’s Prime Minister Mr. Narendra Modi announced the digital currency’s launch by the RBI and said that the digital rupee can be exchanged for cash. The statement was proposed in the Union Budget will open new opportunities in the fintech sector.
PM said, “The digital rupee will revolutionize the fintech sector by creating new opportunities and lessen the burden in handling, printing, logistics management of cash”. He further added the Central Bank Digital Currency (CDBC) will be in the digital form for the physical rupee which will be regulated by the RBI.
This system will enable the exchange of physical and digital currencies. This will directly help in improving the digital economy within the nation and if anyone which to make payment in the digital currency he will be able to change it into cash.
In addition to its potential to revolutionize the fintech sector, he said the digital rupee will reduce the burden of handling, printing, and storing cash.
As part of its digital currency initiative, Finance Minister Nirmala Sitharaman announced earlier that India will launch a digital currency in 2022-23 based on blockchain and other technologies.