Expect Central Bank Digital Currency to be rolled out this year: Sitharaman

India’s central bank digital currency (CBDC) is likely to be rolled out this year with the consultations already underway, Union Finance Minister, Nirmala Sitharaman said during the Unicorn townhall at the India Global Forum on Tuesday. Sitharman said that the CBDC can be a great enabler for large financial transactions, also ensuring safety, especially with Reserve Bank of India at the helm. The finance minister said that on the cryptocurrency front, there is certainly huge investment into these virtual digital assets, however, the government has not yet taken a stance on the regulations for the sector.

“We will hear all the opinions including those who have concerns on cryptocurrencies. The ministry will sit post the consultation process and take a call. I understand there are many citizens who have invested in these assets,” the minister added.

On the question of easing compliance burdens for start-ups who wish to list on the foreign exchanges, Sitharaman said that there is progress in the right direction without referring to the timeline when the government can make an announcement. Notably, decacorns (companies whose valuations have zoomed past $10 billion) like Swiggy, Byju’s are in the process of listing on overseas exchanges .

“On the FDI front, we have ensured that the foreign investors not only put their capital in the Indian companies but also have a say in the board, management of these firms. However, if the foreign investors choose not to join the company boards, that is their decision,” Sitharaman said.

The finance minister also touched upon the financial inclusion in the country by saying that the Budget provisions, including setting up of 75 digital banking units, and supporting fintech sector will be integral to further development in the industry.