Mumbai: days after the government said Bank reserves would introduce digital currencies in 2022-23, the Governor of Shaktikanta Das on Thursday said the central bank did not want to rush and carefully examine all aspects before the central bank’s digital currency was introduced (CBDC).
However, he refused to give any timeline for the launch of the CBDC.
In his budget, 2022-23 speech, Minister of Finance Nirmala Sitharaman has announced that the RBI will introduce the digital currency in the next financial year starting April 2022 to improve the digital economy and for more efficient currency management.
“This (CBDC) is one thing where we don’t want to rush.
We carefully and carefully examine and come forward because there are many risks.
The biggest risk is related to cyber security and the possibility of forgery,” said the waters told reporters in a Presser post-policy.
He said since CBDC is a new product, all central banks who are working on it are very careful.
“I will not spell timeline.
We will advance as mentioned in a budget of 2022-23,” the Governor said.
Deputy Governor of RBI T Rabi Sankar said that the law was amended to enable the issuance of CBDC, RBI to try all pilots and evidence of concepts.
“In the future this year, we will test the design features or technology choices through the concept evidence and will introduce it,” he said.
CBDC is a legal tender issued by the central bank in digital form.
It’s the same as Fiat’s currency and can be exchanged for one-to-use.
While CBDC is a digital or virtual currency, it is not comparable to a private virtual currency that has mushroomed over the past decade.
Sankar said the RBI worked on all models – wholesalers and retail – to introduce CBDC.
He said the central bank was open to try all possible technologies for virtual currencies.
“So it’s not one technology or another, it might be whatever clothes are the best,” he said.
The trend and progress of banking in India’s report, released by the RBI in December last year, said that remembering the dynamic impact of the CBDC in making macroeconomic policies, it is necessary to adopt basic models at first, and test comprehensively so that it has a minimal impact on monetary.
Banking policies and systems.
The progress of payment in India will provide a useful backbone to make sophisticated CBDC available for its citizens and financial institutions, said.