Aside from steering the monetary policy operations in a complex macroeconomic environment over the next fiscal year, the Reserve Bank of India (RBI) will be expected to undertake another challenging assignment. In her Budget speech, Union Finance Minister Nirmala Sitharaman had proposed the “digital rupee”, starting 2022-23, and the RBI would issue it, using blockchain and other technologies. The government believes the central bank digital currency (CBDC) will give a boost to the digital economy. While there is merit in the argument, there are a number of issues, including those related to the so-called cryptocurrencies or digital assets, which need to be addressed.
The government informed Parliament this week the mining cost of cryptocurrencies or digital assets would not be allowed