Sumary of Working on phased introduction of own digital currency, says RBI deputy governor:
- NEW DELHI: The Reserve Bank of India (RBI) is working on phased introduction of such currencies, its deputy governor of RBI T Rabi Sankar said on Thursday.
- What is CBDCAccording to RBI, CBDC is a legal tender issued by a central banking digital form.
- In his speech Sankar noted that CBDC is the same as currency issued by a central bank but takes a form that is different from paper (or polymer).
- “It could also protect the public from the abnormal level of volatility some of these virtual currencies experience,” he added.
- In addition, payments using such currencies are final and thus reduce settlement risk in the financial system.
- It will also potentially enable a more real-time and cost-effective globalisation of payment systems, the deputy governor noted.
- CBDC in IndiaThe finance ministry, in 2017, had set up a high level inter-ministerial committee to examine the policy and legal framework for regulation of virtual / crypto currencies.
- “Introduction of CBDC would possibly lead to a more robust, efficient, trusted, regulated and legal tender-based payments option.