India Mulls for A Central Bank Digital Currency In Its National Blockchain Strategy Draft

As per the latest reports coming out of India, the National Institute for Smart Governance (NISG) has submitted a new draft for its strategy on blockchain. The NSIG is now seeking some stakeholder comments which will help them to redefine the framework for distributed ledger technology and use of digital currencies in India.

The report submitted by the NSIG clearly states that it decision comes after the concrete discussion on use of blockchain technology at World Economic Forum 2020 last week at Davos, Switzerland.

The report states: “Blockchain is disrupting the normal day to day operations for every organization and country. Blockchain was a priority topic at Davos; a World Economic Forum survey suggested that 10 percent of global GDP will be stored on blockchain by 2027”.

Besides, the NSIG also stated that having a national strategy in place will help take a leading place by 2025 in use of blockchain and crypto for innovation, educations, and other commercial needs.

The agency has also requested the government of India to work in collaboration with the central bank and have the country’s own official cryptocurrency administered by the Reserve Bank of India (RBI).

It states: “It is strongly recommended that Government of India along with RBI come out with a Central Bank Digital INR (CBDR) administered over a Public Permissioned Blockchain”.

The Indian government which has been previously tough with its stand on digital currencies is now moving towards somewhat neutral approach. Thanks to the global developments in the digital currency space.

Major economies across the globe like China, the EU, the U.S and other countries have been considering having a central bank digital currency (CBDC) in an effort to revolutionize the global payments industry. India knows that if has to stay as one of the major global economies, it cannot avoid being part of this payments revolution.

The latest report from the NSIG comes just a few days after the RBI clarified that it has not banned digital currencies in India. However, for the time being, it has asked all regulated financial institutions to refrain from indulging with any crypto-related companies in the country.