There is no plan to introduce cryptocurrency by the government, Finance Minister Pankaj Chaudhary told the Rajya Sabha on Tuesday.
Currently, cryptocurrencies are not regulated in India, he said in a written response.
“RBI does not issue cryptocurrency. Traditional paper money is legal tender and is issued by RBI in terms of the provisions of RBI Act, 1994. A digital version of traditional paper money is called Central Bank Digital Currency (CBDC),” he said.
RBI is currently working on a phased implementation strategy for the introduction of CBDC and is exploring use cases that can be implemented with little or no disruption, he said in another response.
The introduction of CBDC has the potential to provide significant benefits such as reduced reliance on cash, increased seigniorage due to lower transaction costs, etc., he added.
Banknote printing has declined over time, he said, adding that notes worth Rs 4,378 crore were printed in 2019-20, which amounted to Rs 4,012 crore in 2020-21.
In response to another question, he said, the country’s financial health encompasses many facets.
“A stable stock market along with a well-functioning and advanced market infrastructure is an indicator to assess a country’s financial health. Stock markets are indicative of medium to long-term economic growth, as stock prices reflect the market’s expectation of future corporate earnings. reflect profitability and therefore the underlying confidence in the economy,” he said.
However, he said that in the short term, stock markets are mainly driven by economic and geopolitical events.
Exchanges charge a transaction fee to the broker, which can be passed on to clients, he said, adding that the transaction fee is stated in the contract note issued to the client by the broker.
The taxes levied on the sale and purchase of shares, including those levied by exchanges, are stated in the contract note provided by the broker to clients at the end of each trading day, he said.
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