Indian Apex Bank RBI Publishes Concept Note For its Digital Rupee, CBDC
The Reserve Bank of India (RBI), India’s apex bank, has published a 50-page concept note for the introduction of a central bank digital token (CBDC) in the country.
The document has been prepared by the RBI’s Fintech department, the sole motive for creating this was to form Crypto Token regulations and create a central bank digital Token (CBDC).
Approach Towards Modern Digital Assets –
The note published majorly focused on the importance of identifying “innovative methods and compelling use cases that will make CBDC as attractive as cash if not more.” It is said to be a stage-implemented strategy, going step by step through various stages of creating, testing, and implementing.
Promising a Better Option than Traditional Money –
The RBI is working in CBDC with the most promising opportunity of reducing the cost involved in physical cash management, fostering financial inclusion, bringing resilience, efficiency, and innovation in the payments system, boosting innovation in cross-border payments space, to provide the public with uses that any private virtual currencies can provide, without the associated risks, to offer availability and resilience benefits when electrical power or mobile network is not available in remote locations.
Stated it is a Safer Crypto Token –
While taking into consideration the dangers of crypto tokens as a threat to the stability of the financial system, the RBI has stated its CBDC as a “Risk-free central bank digital money which will provide the users the same experience of dealing in Token in digital form, without any risks associated with private cryptocurrencies.”
The RBI has also indicated the advantages of introducing both Wholesale and Retail CBDCs, going by the “potential offered by each of them.”
Conclusion – Indian Apex Bank RBI publishes concept note for its Digital Rupee, CBDC. RBI stated it is a cost-effective token that reduces the impact of reduced human resource costs and actual physical labor involved while dealing with traditional money. Also, it comes safer than other Crypto tokens in the market as the statement backed by RBI Authorities.
