Indian central bank officials Just as cryptocurrencies such as Bitcoin and Ethereum can do, the Reserve Bank of India (RBI) should be able to create a product that does the same job without the associated risks. “This is basically what we do in our CBDC experiments,” he stressed.
His RBI official on cryptocurrencies and the digital rupee
Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar said at an event Friday that he and talked about Central Bank Digital Currencies (CBDC). Hosted by the Indian Bankers Association (IBA).
“We have seen the environment in which private currencies evolve. We recognize that this poses threats to investors, systems and economies. We have also noticed that it shows that it can be beneficial,” said an RBI official. “The way we dealt with that was to provide digital currency.” He said:
If there is anything that can be done with private cryptocurrencies, do it without the associated risks and in a more secure form with government-backed, central bank-issued fiat currencies. You should be able to create a product. This is basically what we do in our CBDC experiments.
The RBI launched its first retail Central Bank Digital Currency (CBDC) pilot on December 1, with the participation of eight banks. The pilot will eventually cover his 13 cities across India. The retail digital rupee experiment follows his RBI’s wholesale CBDC pilot which was launched for trading government bonds on 1 November. The wholesale pilot will be expanded later to cover more use cases including money market instruments.
India’s central bank governor said his first CBDC pilot was aimed at ensuring the effectiveness of all systems. He explained:
As we proceed, the pilot will focus on identifying the right architecturally appropriate technologies for the distribution of digital currency.
The RBI’s deputy governor explained that it would build on the digital infrastructure being created by central banks, with many possibilities including smart contracts and tokenized bonds. emphasized that there is
There are potentially game-changing options, especially in the area of cross-border trade. There are many inefficiencies in this process that CBDC can address.
On the other hand, the RBI believes that cryptocurrencies such as Bitcoin and Ether should be banned entirely. Sankar said in February that it would be futile to regulate cryptocurrencies, noting that cryptocurrency products were “fundamentally designed to circumvent the established financial system and the larger government itself.” are there,” he warned.
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