Deputy Governor of RBI: The days of the CBDCs are ripe, we are investigating in-depth investigations

The Reserve Bank of India (RBI) is still in the research phase of the central bank digital currency (CBDC).

T Rabi Sankar, Deputy Governor of the RBI, said CBDC evolution could bring many of the same uses to the general public as digital currencies like Bitcoin, while limiting volatility to the average user.

“This could indeed be a key factor in leading central banks to view CBDC as a safe and stable form of digital currency…. The arguments in favor of CBDCs for emerging markets are clear – not only because of the advantages in the payment system, but also possibly necessary to protect the public in an environment of many private VCs full of volatility. “

T Rabi Sankar, Deputy Governor of the RBI

The RBI is currently reviewing a phased implementation strategy and reviewing cases where CBDCs can be put into practice with little or no disruption to the bank’s status quo, Sankar said. According to him, there are several aspects that need to be considered before considering implementing CBDC. For example, careful consideration should be given to how retail payments or payments between consumers and businesses are organized. Security issues, including permitting user anonymity, are also discussed.

Of the issues mentioned, Sankar appears to be most interested in undermining the central bank’s authority. He stressed that traditional financial institutions could lose their role as trustworthy third parties if individual users were given the opportunity to conduct reliable transactions for themselves.

Sankar believes that not only can the blockchain technology invented by Bitcoin inventor Satoshi Nakamoto limit bank lending, but also because people act without intermediaries. However, in his statement, he did not recognize the range of decentralized lending options that the DeFi community has created – some of which have been successfully implemented.

Although much research has been done, the deputy governor said it may not be long before pilots are up and running in both the retail and wholesale markets:

“This requires careful calibration and a delicate approach. Planning considerations and stakeholder consultation are important. Technological challenges must also be taken into account. As I said, every idea has to wait until the time is right. Perhaps the days of CBDC are very near. “

CBDCs have gained a lot of traction over the past year. South Korea recently selected a blockchain company as a technology provider for its CBDC pilots. Bank of Canada staff also published a study detailing the potential benefits of CBDCs. In the United States, the chairman of the Federal Reserve said that CBDCs could reduce the number of cryptocurrencies put on the market.

Annie

According to Cointelegraph

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