According to top executives, the central bank of India is considering launching a digital currency and has only made clear its intentions after stating that it has previously studied the idea.
TRabi Sankar, Deputy Governor of the Reserve Bank of India, said at today’s meeting that the central bank will introduce national digital currencies in a “step-by-step” manner while legislative changes are being made to foreign exchange rules in South Asian countries. He said he was considering doing so. IT law.
Sovereign-backed digital currencies reduce the economy’s reliance on cash, enable cheaper and smoother international payments, and protect people from fluctuations in privacy cryptocurrencies, he said.
“All ideas have to wait for that time and the time of the CBDC. [central bank digital currency] near. We carefully assessed the risks, “he told the audience at a meeting held by the Vidhi Legal Policy Center in think tanks.
Mr. Sunker said that the central bank’s “efforts are as we move forward. [with the plan]”The Indian digital currency” can repeat its leadership position in the global payment system. “
The top executive’s statement follows last week when the European Central Bank launched a 24-month “investigation phase” that, if successful, could lead to the creation of the digital euro by 2025.
Also last week, China’s central bank said the digital yuan trial had reached $ 5.3 billion in transactions by the end of June.
“Central banks are paying more attention to digital currencies,” says Sankar. “CBDC will be the arsenal of most, if not all, central banks in the world. A coordinated and subtle approach will be considered on the board and in consultation with interested parties.” The central bank has been investigating the benefits and risks of issuing sovereign CBDCs “for quite some time,” he added.
“We investigated the purpose-built CBDCs for the wholesale and retail segments proposed by various central banks around the world. The launch of a population-sized general-purpose CBDC is being considered and the RBI is phased. We are working towards a successful implementation strategy and are considering use cases with little or no disruption to the Indian banking and monetary system, “he said. “But piloting in the wholesale and retail segments may be possible in the near future.”
In his remarks, Sunker also hinted that the central bank has not changed its position on private cryptocurrencies such as Bitcoin.
In 2018, a Commission of the Government of India recommended banning all private cryptocurrencies and offered criminals up to 10 years in prison. The panel also proposed that the government explore the digital version of fiat currency and how to implement it.
At the time, RBI said the move was needed to curb the “ring fencing” of the country’s financial system. He also claimed that Bitcoin and other cryptocurrencies could not be treated as currencies because they did not exist in metal or physical form and were not stamped by the government.
“They aren’t claims for commodities or commodities because they have no intrinsic value. They’re clearly opportunistic, with some claims that they resemble gold,” Sunker said today.
The 2018 notice from the central bank has panicked some local start-ups and businesses offering services to trade in cryptocurrencies. Almost all of them have been pivoted since the store closed or to serve other markets.
The proposal was challenged by several exchanges and traders who filed proceedings in the Supreme Court.National Supreme Court Last year they ruled in favor of them.. Although this ruling was considered “historical,” it has not yet affected previous circulations at the policy level.Meanwhile, the country hinted that it was planning to do Introduce a law banning private cryptocurrencies..
An agenda published on the House of Representatives website earlier this year called for the law to “ban all private cryptocurrencies in India,” but “with certain exceptions, to promote the underlying technology. Allow to [blockchain] About cryptocurrencies and how to use them. “
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