hi INDiA Copyright 2020
New Delhi, July 22
The RBI is working on a phased implementation strategy for its own digital currency and is in the process of launching it in wholesale and retail segments in the near future, RBI Deputy Governor T Rabi Sankar said on Thursday.
He said the idea of Central Bank Digital Currency (CBDC) is ripe, and many central banks in the world are working towards it.
Sankar further said CBDC is needed to protect consumers from the “frightening level of volatility” seen in some of the virtual currencies which have no sovereign backing. He said central banks across the globe are engaged in exploring CBDCs, and a few countries have also introduced such concepts.
RBI Deputy Governor T Rabi Sankar said Central Bank Digital Currency (CBDC) is needed to protect consumers from the “frightening level of volatility” seen in some of the virtual currencies which have no sovereign backing
A high-level panel constituted by the Ministry of Finance has recommended the introduction of CBDC as a digital form of fiat money in the country
“Perhaps the idea for CBDCs is near,” he said while participating in an online discussion organised by The Vidhi Centre for Legal Policy.
“Like other central banks, RBI has also been exploring the pros and cons of introduction of CBDC since quite some time,” he said, and added generally countries have implemented specific purpose CBDCs.
The RBI, he said, is currently working towards a phased implementation strategy and examining cases which could be implemented with little or no disruption in the banking system and the monetary policy.
“…conducting pilots in wholesale and retail segments may be a possibility in the near future. So, some progress has been made. You know we could likely come up with this in the near future,” Sankar said. — PTI
To be launched in wholesale and retail segments
Digital currency is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. The central bank is in the process of launching it in wholesale and retail segments in the near future.