RBI Deputy Governor T Rabi Sankar said on Thursday that the Reserve Bank is working on a phased deployment approach for its own digital currency and that it is in the process of releasing it in wholesale and retail segments in the near future.
He believes the concept of Central Bank Digital Currency (CBDC) is ready for implementation, and that several central banks around the world are working on it.
Sankar further stated that CBDC is required to protect customers from the “frightening level of volatility” found in some virtual currencies that are not backed by a government.
Officially, the news was posted on twitter on Thursday by the official twitter handle of RBI.
He claims that central banks all across the world are investigating CBDCs, and that a few countries have already done so.
“Perhaps the idea for CBDCs is near,” he stated during an online conversation hosted by The Vidhi Centre for Legal Policy.
It has been recommended that CBDC be introduced as a digital fiat currency in India by a high-level inter-ministerial committee.
Twitteratis aare already mixed with happiness and annoyance over the news as some supports cryptos and some RBI.
A user posted his opposing views on the news. He says, “Digital currency can never beat crypto because crypto is an asset.”
Another twitter user comes up with an economical fact and tweeted,
And much support to RBI…
Devendra Banerjee indicated that legislative amendments would be required, as the current regulations had been designed with the Reserve Bank of India Act in mind.
He added that the Coinage Act, the Foreign Exchange Management Act (FEMA) and the Information Technology Act would also need to be amended.
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