Mumbai: Reserve Bank of India (RBI) has said that it works towards a gradual implementation strategy for its digital currency and checks cases of use where it can be deployed with a little disturbance.
Making a strong argument to support the Digital Currency of the Central Bank (CBDC) for India, RBI said that it would reduce the cost of currency for the government and would help compensate for the threat of a virtual currency.
“Developing our own CBDC can provide the public using that every personal virtual currency can provide and so far it can maintain public preferences for rupees.
It can also protect the public from the level of abnormal volatility.
Some of these virtual currency experiences,” RBI Deputy Governor said T Rabi Sankar on Thursday at a webinar held by the Vidhi Law Center.
Sankar added that doing pilots on CBDC in wholesalers and retail segments may be possible in the near future.
“As it says, every idea must wait for the time.
Maybe the time for CBDC is near,” he said.
On the consequences of digital currencies at the bank, Sankar said that while it could reduce the need to maintain a deposit, the impact will be limited because they cannot pay interest.
“Thus, the potential disintermediation costs are important to design and implement CBDC in a way that makes a request for CBDC, vis-a-vis deposit bank, managed,” Sankar said.
The main problem checked by the RBI includes whether this must be used in retail payments or also in wholesale payments, whether it must be distributed with a ledger or a ledger to centralized, whether it must be a token-based or account-based, whether it should directly publish by RBI or through banks and anonymity levels.
In a strong attack on the virtual currency (Cryptocurrency), Sankar said, “Private virtual currencies sit on substantial opportunities for the historical concept of money.
They are not commodities or claims in commodities because they do not have intrinsic value, some claim that they are similar to gold Looks clear opportunistic.
For the most popular now, they do not represent someone’s debt or liabilities.
There is no publisher.
They are not money.
“Deputy Governor said the 86% of the central bank was actively examined the potential of virtual currencies and 60% had experimented with technology, and 14% using a pilot project.
He said that the interests soared to replace paper and avoid more damaging consequences of the private currency.
The statement of Deputy Governor came at the time of RBI forced by the Supreme Court order to attract the prohibition of bank services to Cryptocurrency.
Even though RBI had previously talked about plans to launch a digital currency, this was the first time the central bank experienced so much detail.
Central banks around the world have planned to launch their digital currency to fight Cryptocurrency.
China said that her e-CNY had been tested in 70 million transactions.