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The Reserve Bank of India (RBI) continues to investigate the issuance of central bank digital currency (CBDC).
T Rabi Sankar, Deputy Governor, Reserve Bank of India, Say In a speech organized by the Vidhi Legal Policy Center, private digital currencies may be part of what makes CBDC ultimately necessary. He believes that RBI’s development of its own CBDC can provide the public with many of the same uses as Bitcoin and other digital currencies, while limiting the volatility risks faced by ordinary users. He says:
“In fact, this may be the key factor that prompted central banks to regard CBDC as a safe and stable form of digital currency… Therefore, the situation of CBDC in emerging economies is obvious-CBDC is not only because they are paying The benefits created in the system are desirable, and it may be necessary to protect the public in an unstable private venture capital environment.
Sankar went on to say that the Reserve Bank of India is currently studying a phased implementation strategy and studying cases where CBDC can be implemented with little damage to the status quo of the bank. The official detailed some issues that need to be checked before actually considering CBDC implementation. He pointed out that it is necessary to carefully consider how to coordinate retail payments or payments that occur between consumers and businesses. Security issues, including the extent to which users are allowed to be anonymous, are also open for discussion.
related: India’s ICICI Bank warns remittance users to stay away from Bitcoin
Among the issues mentioned, Sankar seems to be most concerned about the overthrow of the central bank’s supervision and power. He emphasized that if individual users can conduct trustless transactions for themselves, traditional financial institutions may lose their role as a trusted third party. Considering that the creator of Bitcoin, Satoshi Nakamoto, publicly designed blockchain technology to end the shackles that he believes banks unnecessarily enjoy in disintermediation, this fear can be said to be effective.
Sankar said that transactions without intermediaries may also reduce the ability of banks to extend credit to customers.However, in his statement, the official did not acknowledge the many options for decentralized credit issuance designed by the DeFi community-some of which have been successful Implementation.
Sankar said that although there is more research to be done, pilot projects in retail and wholesale markets will be launched soon:
“Setting it up requires careful calibration and meticulous implementation methods. Drawing board considerations and stakeholder consultations are important. Technical challenges are also important. As mentioned earlier, every idea must wait for an opportunity. Perhaps the era of CBDC has come. .”
CBDC has received a lot of attention in the past year.South Korea recently Choose blockchain A subsidiary of a local Internet company as a technology provider for its digital won pilot test.The staff of the Bank of Canada also Published a study Explain in detail the possible benefits of CBDC. They pointed to many advantages, including the cancellation of debit and credit card transaction fees, and the inherent possibilities of programmable currencies.In the United States, the Federal Reserve Chairman CBDC says Can reduce the number of cryptocurrencies being launched.
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