Employees of the Reserve Bank of India (RBI) are developing a blockchain for CBDC, in which information about all transactions will be stored. Each coin will be assigned a unique number by analogy with banknotes.
In the future, the residents of the country will be able to pay for goods and services with digital rupees using an electronic wallet. After confirming the operations, the central bank will transfer digital assets to the recipient of the funds. An anonymous source has explained:
“Digital rupees will be included in the general money supply. The CBDC will not differ much from fiat currency and will essentially be an electronic form of cash that can be accessed through an electronic wallet created by the government.”
India’s Finance Minister Nirmala Sitharaman believes the virtual currency of the central bank will increase efficiency and reduce the cost of managing money flow. In this regard, she has supported the creation of a digital rupee and stated that the asset will be released in the period from 2022 to 2023.
The government of India is skeptical about non-state cryptos and will never give them the status of legal tender. However, officials do not plan to ban digital assets and want to replenish the treasury by taxing the sale of coins.