India's own official digital currency is expected to emerge in early 2023, and will be similar to any of the already available private company-operated electronic wallets, with the exception that it will be a sovereign-backed facility, a top government source said.
Last week, Finance Minister Nirmala Sitharaman mentioned in her budget speech that a central bank-backed 'digital rupee' would be launched soon. A top government source who did not want to be identified, the RBI's digital money will be numbered in units, much like every fiat currency. "The digital rupee units will be incorporated in the money in circulation. It wouldn't be all that different from fiat money. In a way, it would be a government-mandated electronic wallet, as it would be more like an electronic form of fiat currency "According to the source.
The source, the RBI has stated that the digital rupee will be available by the end of the next fiscal year. Unlike the existing system of mobile wallet offered by private companies, the Reserve Bank's digital rupee blockchain will be able to track all transactions. The source added, "People already send money to a private company that stores the money on their behalf and pays to a merchant when there is any transaction using electronic wallets offered by private corporations."
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