Amid concern over cryptocurrency, the Union Finance Minister Nirmala Sitharaman announced in the Union Budget that the Reserve Bank of India (RBI) will issue digital currency from 2022-23.

Stressing for a boost of the digital economy, she stated that the digital rupee will be introduced using blockchain and other technologies. According to the Finance Minister, this would help a more efficient and cheaper currency management system and reduce the burden on paper currency.

The introduction of digital currency will give a boost to the economy. Digital currency will also lead to more proposed to introduce digital rupee using blockchain technologies, she explained.

"It is therefore proposed to introduce digital rupee - using blockchain and other technologies - to be issued by the Reserve Bank of India, starting 2022-23," Nirmala Sitharaman said. 

The move is seen as a big push for the government's "Digital India" programme. 

It also comes amid deliberation over the regulation of cryptocurrency. The RBI had earlier voiced "serious concerns" around private cryptocurrencies on the grounds that these may cause financial instability.

The Union government's move comes at a time when the Centre is mulling a robust policy to curb the misuse of cryptocurrency. On November 13, 2021, Prime Minister Narendra Modi has chaired a meeting on the way forward for cryptocurrency and flagged the issue of misleading non-transparent advertising regarding the same.