NEW DELHI: The government is readying legislation that has huge implications for the future of money in this country. The legislation will regulate not ban cryptocurrency, but that’s only a small part of it. More ambitious is the Central Bank Digital Currency that will usher in the “eRupee”.
Anil Padmanabhan, former editor of the Mint and currently running his own substack CapitalCalculus, told The Gist that the “eRupee” already exists with the government depositing money in peoples accounts through the United Payment Interface. Huge transactions such as MNREGA, Jan Dhan or payments for farmers and others are being done.
But the eRupee is yet to reach to every level of the chain and this gap is sought to be filled through the new legislation that will utilise blockchain technology. Blockchain is basically a software code that will ensure confidentiality, integrity and transparency of all monetary transactions. This is the direction the US and Europe are moving towards. India is headed in the same direction.
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