The RBI has repeatedly raised concerns about cryptocurrencies.
Mumbai: Reserve Bank of India digital currency may launch pilot in first quarter of next financial year, a senior central bank official at the Bank’s Economic and Banking Conference State of India said as one newspaper reported.
“I think somewhere it’s been said that at least by the first quarter of next year a pilot could be brought in. So we’re very optimistic about that.” Business standards The newspaper quoted P. Vasudevan, general manager at RBI’s Billing and Settlement Department as saying.
Central Bank Digital Currency, or (CBDC) is a digital currency or virtual currency that is essentially a digital version of a fiat currency, for India it would be its domestic rupee this country.
Previously, the central bank governor had said a CBDC soft launch could be expected in December but there is no official timeline to which the RBI is committed.
“We’re doing the work and we’re looking at the different issues and nuances associated with CBDCs. It’s not simple to just say that CBDCs can become a habit from tomorrow,” Vasudevan said. and added that CBDC could have a role depending on how it is implemented and that there should be no rush to launch it.
Vasudevan said the RBI is looking at various issues related to the segment a CBDC should target – wholesale or retail, validation mechanisms and other issues including distribution channels.
“The central bank is also examining whether intermediaries can be completely bypassed, and most importantly, examining whether the technology should be decentralized or semi-centralised,” RBI CGM said.
The RBI has repeatedly raised concerns about cryptocurrencies posing risks to macroeconomic and economic stability.
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
