India’s central bank, the Reserve Bank of India (RBI), is working on “a phased introduction of central bank digital currency (CBDC) in both the wholesale and retail segments.” The necessary amendments were made to the RBI Act of 1934 to allow the central bank to pilot and issue a digital currency.
Central Bank of India digital currency to be rolled out in stages
The Reserve Bank of India (RBI) official and Minister of State at the Ministry of Finance independently provided an update on the central bank’s progress in issuing a central bank digital currency (CBDC).
Local media quoted RBI Executive Director Ajay Kumar Chowdhary during the keynote speech at the PICUP Fintech conference and awards on Wednesday:
RBI is working on a phased introduction of a central bank digital currency (CBDC) in both the wholesale and retail segments.
Pankaj Chaudhary, Minister of State at the Ministry of Finance, similarly told the Rajya Sabha, the upper house of the Indian Parliament, on Tuesday that “RBI has begun work on phasing out the announcement made … in the 2022-23 budget speech. ”
Indian Finance Minister Nirmala Sitharaman announced the launch of CBDC in the Union Budget 2022-2023. The RBI Act of 1934 was subsequently amended as necessary with the passage of the Finance Act of 2022 to allow the central bank to pilot and issue CBDCs.
In June, RBI deputy governor T. Rabi Sankar stated that the central bank believes that “CBDCs can really kill any little case that might be for private cryptocurrencies.” The government of India and the central bank refer to non-government issued cryptocurrencies, including bitcoin (BTC) and ether (Ethereum) as private cryptocurrencies. The RBI also warned in May that the cryptocurrency could lead to the dollarization of part of the Indian economy.
Earlier this month, RBI Governor Shaktikanta Das said: “Cryptocurrencies are a clear danger. Anything that gains value on the basis of fiction, without any basis, is just speculation under a fancy name.”
The Central Bank of India has repeatedly said that cryptocurrencies should be banned. However, earlier this week, the country’s finance minister told parliament that “any regulation or prohibition law can only be effective after significant international cooperation in assessing the risks and benefits and the evolution of a common taxonomy and standards.”
What do you think about how RBI plans to implement CBDC? Let us know in the comments below.
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