RBI Contemplating Pilot Launch Of Digital Currency In Near Future
- ByStartupStory | July 23, 2021
RBI contemplating pilot launch of digital currency in near future 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.
“Perhaps the idea for CBDCs is near,” he said while participating in an online discussion organised by The Vidhi Centre for Legal Policy. In India, a high-level inter-ministerial committee constituted by the Ministry of Finance has examined the policy and legal frameworks, and has recommended the introduction of CBDC as a digital form of fiat money in the country. “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 Reserve Bank, he said, is currently working towards a phased implementation strategy and examining cases that 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.
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