The deputy governor of the Reserve Bank of India (RBI) has revealed that the central bank is planning to launch a state-backed digital currency in phases so that it would have “little or no disruption to India’s banking or monetary systems.”
RBI Plans ‘Phased Implementation’ for Digital Rupee
- RBI Deputy Governor T. Rabi Sankar talked about India’s central bank digital currency (CBDC) at the Vidhi Centre for Legal Policy on Thursday, local media reported.
- He explained that the “RBI has been exploring the pros and cons of introduction of CBDCs since quite some time,” elaborating:
RBI is currently working towards a phased implementation strategy and examining use cases which could be implemented with little or no disruption to India’s banking or monetary systems.
- According to the central bank, a CBDC “is the same as a fiat currency and is exchangeable one-to-one with the fiat currency,” Sankar described, adding that “Only its form is different.”
- He noted that “Generally, countries have implemented specific-purpose CBDCs in the wholesale and retail segments,” emphasizing that “Going forward, after studying the impact of these models, launch of general-purpose CBDCs shall be evaluated.”
- The deputy governor further opined, “conducting pilots in wholesale and retail segments may be a possibility in near future.”