Budget 2022: 'Incredible ... Jai Ho!' Paytm, Snapdeal bosses give thumbs-up to CBDC, hail FM's digital rupee announcement

The Indian government is all set to introduce a blockchain-based Central Bank Digital Currency (CBDC). The announcement about the CBDC was made by the Finance Minister during the Union Budget 2022-23.

"Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy," said Finance Minister Nirmala Sitharaman during the budget.

Investors and cryptocurrency experts have been expecting clarity from the government on crypto assets. However, many entreprenuers welcomed the decsion.



Paytm founder Vijay Shekhar Sharma welcomed the announcement with a tweet. "#CBDC Jay Ho! What an incredible announcement of #Budget2022," said Sharma in a tweet.

Meanwhile, founder of Snapdeal, Kunal Bahl, hailed the decision by calling it transformational. "The significance of this step is monumental. For an economy of India's size and global influence to make a formal push into a digital currency is going to be truly transformational," he said in a tweet.
CBDC explained:
CBDC is essentially a virtual form of fiat currency. It is an electronic record or digital token of the official currency. According to experts, CBDC has the potential to promote financial inclusion. However, since they are a centralised form of currency, they may impact the privacy of citizens. At present, the concept of CBDC is still under development around the world.

CBDC gained prominence during the constant rise of cryptocurrencies such as Bitcoin, Ethereum, Tether, Dogecoin etc. However, unlike cryptocurrencies, CBDCs are legal tenders that are centralised and issued by banks.

The Indian central bank had said last year that it was working towards launching a digital currency at a mass scale. Owing to the rising popularity of digital currencies, the bank expressed concern over reducing use of traditional banking system.