Cryptocurrency

India’s central bank plans CBDC launch in 2022 with help from fintechs, public banks

The Reserve Bank of India (RBI) is in talks with fintech companies and four public sector banks to pilot a Central Bank Digital Currency (CBDC) project planned for late 2022. money control Reported on September 5th.

Fidelity National Information Service (FIS) is reportedly one of the firms consulting the central bank. FIS will provide banks with a central infrastructure payment solution to build or update their real-time payment systems and a CBDC virtual lab to support countries piloting CBDC programs. News release on August 25.

This fintech firm advises central banks on CBDC topics such as offline and programmable payments, currency regulation, financial inclusion and cross-border CBDC payments.

FIS senior director Julia Demidova told Moneycontrol:

“FIS has had various engagements with RBI…Of course, we can also extend our connected ecosystem to RBI to experiment with different CBDC options.”

Full speed ahead for CBDC launch

and speech In the Federal Budget in February, India’s Finance Minister Nirmala Sitharaman announced that the CBDC would be launched this year. She claims that it is a digital form of interchangeable physical rupees and is regulated by the RBI.

Following Sitharaman’s speech, Union Trade Minister Piyush Goyal said the RBI’s CBDC would become India’s official and legal tender. He added that while the Indian government does not recognize private cryptocurrencies as legal tender, a 30% crypto tax will apply if citizens want to keep their assets. All cryptocurrencies that are not listed are considered private cryptocurrencies.

In May, the RBI “Phase-by-phase approach” Launching India’s CBDC in its annual report 2021-22, stating:

The Reserve Bank is proposing to take a phased approach to CBDC deployment, with phases of proof-of-concept, pilot and launch.

18th July, Sitharaman More comments on cryptocurrencies On behalf of the RBI, he expressed concern about the “destabilizing effects of cryptocurrencies on the country’s financial and financial stability” and said a legal framework should be implemented in this area.

“RBI believes cryptocurrencies should be banned,” she added.

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