Sumary of RBI working on digital currency, pilot projects likely in near future: Dy Guv:
- New Delhi: The RBI is working on phased introduction of its own digital currency and is mulling pilot projects in wholesale and retail segments in the near future, Deputy Governor T Rabi Sankar said on Thursday.
- He also said several countries have implemented specific purpose Central Bank Digital Currencies (CBDCs) in the wholesale and retail segments.
- A CBDC is a legal tender issued by a central bank in a digital form.
- It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency.
- “It could also protect the public from the abnormal level of volatility some of these VCs experience,” he said while participating in an online discussion organised by The Vidhi Centre for Legal Policy.
- “Introduction of CBDC would possibly lead to a more robust, efficient, trusted, regulated and legal tender-based payments option.
- He said CBDCs are likely to be in the arsenal of every central bank going forward.
- “RBI is currently working towards a phased implementation strategy and examining use cases which could be implemented with little or no disruption,” he said.