The former head of Credit Suisse India and Lehman Brothers India has said that it is time for a digital Indian rupee, as CCN (cryptocoinnews.com) and
The former head of Credit Suisse India and Lehman Brothers India has said that it is time for a digital Indian rupee, as CCN (cryptocoinnews.com) and The Hindu (thehindu.com) wrote in recent publications.
India is a country, where more than 95% transactions are cash-driven, while the rural and semi-urban populations have been largely excluded.
In November last year, Indian Prime Minister Narendra Modi has reportedly announced the ban of two of the biggest fiat banknotes in the country. Following this unprecedented move, ₹500 and ₹1000 bank notes (approx. $7.50 and $15) bank notes became obsolete effective November 9.
As Modi defended her decision, she said to the local media that it was taken to tackle corruption, black money (illegally held cash) and terrorism.
“Your money will remain yours. You need have no worry on this point.”, as Modi commented.
However, the unexpected measure disrupted the lives of millions of poor Indians who are largely unbanked.
“The digital fiat currency, which we have proposed to the government, works in the same way as do notes and coins. By virtue of its digital nature, it has the potential to be the most financially inclusive instrument.”, stated Ajeya Singh in his commentary published in thehindu.com.
“It is imperative to introduce digital fiat currency as part of the remonetisation of the economy for monetary sovereignty and policy effectiveness.”, he elaborated in the report.
He explained that the Indian government should consider issuing a digital fiat currency that would be known as the digital Indian Rupee. The latter would be legally accepted throughout the country.
India has witnessed an increase in digital payments after the demonetization. However, getting an own digital Indian rupee still seems quite far-fetched.