SBI Managing Director CS Shetty said in a program that Central Bank Digital Currency (CBDC) i.e. digital currency in the country will soon become a reality.
This digital asset issued by the central bank will play an important role in cross-border deals or transactions. A few days back, it was reported that the Reserve Bank (RBI) is working on a plan to launch its digital currency as a pilot project in the first quarter of the next financial year.
Digital Currency: Central Bank Digital Currency (CBDC) i.e. digital currency will soon become a reality in the country. This digital asset issued by the central bank will play an important role in cross-border deals or transactions. State Bank of India (SBI) Managing Director CS Shetty (managing director CS Setty) has said this amidst waiting for the cryptocurrency regulatory framework in the country.
While addressing the participants of ISB Leadership Summit 2021, Shetty said that CBDC will change the entire nature of cross-border transactions going forward. Countries around the world cannot stay away from CBDCs or digital currencies. He told that the introduction of CBDC will raise many questions. For example, what will happen to the intermediary role of the bank. How will this affect the monetary and fiscal policies of the country?
Reserve Bank is working on this pilot project A
few days ago it was reported that the Reserve Bank (RBI) is working on a plan to launch its digital currency as a pilot project in the first quarter of the next financial year. P. Vasudevan, Chief General Manager, Payment and Settlement Department, RBI had said that we are very excited to launch a pilot project related to digital currency by the first quarter of the next financial year.
How digital currency will be used
These digital currencies, or CBDCs, issued by India’s central bank, are basically a digital version of fiat currencies for India. For India, this domestic currency will be used only as rupee. Earlier, while giving a statement, the Governor of Reserve Bank of India had said, “Soft launch of CBDC can be expected by December, but no official deadline for its launch has been given by RBI yet.”
RBI working on its specifics
Giving a statement about its launch, Vasudevan said, “We are working on its launch and we are looking at various issues and nuances related to CBDC. It cannot be said that CBDCs can be habit-forming from tomorrow itself. The role of launching it depends on how it is implemented. We do not want to show any haste about launching it. Every aspect related to CBDC is being investigated by RBI. This also includes areas such as retail verification and distribution channels.
