Indian Finance Minister Nirmala Sitharaman has stated that it is too early to assess the spillover effects of central bank digital currencies (CBDCs) during the question hour of the parliament as per a report by IANS.

While answering DMK member, T. Sumathy’s question concerning the autonomy of the individual and full control of the state if CBDCs are launched. The FM stated that CBDCs are issued by the Reserve Bank of India. She added that the RBI has come up with the pilot project which started last December and is monitoring its retail and wholesale use. Only after the process is completed they can see if the digital currency has any spillovers and will make a decision.

Moreover, speaking at a recent virtual conference hosted by the G20, Sitharaman said that while CBDCs have the potential to offer several benefits, including financial inclusion and improved payment systems, their impact on the global economy is still unclear.

(By Shourya Jha)

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