The Reserve Bank of Indias (RBI) digital rupee will run on a government-mandated electronic wallet that will allow the central bank to be the middleman between merchants and customers, a top government official told the Press Trust of India.
Fast facts
The government official said the nations central bank digital currency (CBDC) is likely to launch early next year.
The digital currency would be numbered in units, just as every fiat currency has a unique number.
Finance Minister Nirmala Sitharaman announced in her recent budget speech that India will be launching its own CBDC while imposing a 30% tax on all income on cryptocurrency.
Digital currencies issued on the blockchain, such as the expected digital rupee, will permit governments to trace all transactions, unlike the current system of mobile wallets offered by private companies.
In the case of a digital rupee, the currency will be stored in state-backed wallets on devices.
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