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CBDCs can make cross-border payments faster & cheaper
September 05, 2023
The issue of easing cross-border payments is a priority area for India’s G20 presidency and adoption of central bank digital currencies (CBDC) by global banks could make such payment transactions faster, cheaper and more secure, Reserve Bank of India (RBI) Governor Shaktikanta Das said at the G20 Tech Sprint Finale held here today.
“Notwithstanding the progress made so far, the key challenges to existing cross border payments continue to be high cost, low speed, limited access and insufficient transparency,” Das said, adding that faster, cheaper, more transparent, and more inclusive cross-border payment services would deliver widespread benefits to individuals and economies worldwide. It will also support economic growth, international trade and financial inclusion.
Das said that several central banks globally are considering introduction of CBDCs and are taking steps in the direction. India, for one, is among the few countries which have launched CBDC pilots in both wholesale and retail segments. Slowly, Das said, the pilot is being extended to more banks, more cities, more people and more use cases.
“The empirical data that we are generating would go a long way in shaping the policies and future course of action. With its instant settlement feature, I believe, CBDCs can play an important role in making cross-border payments cheaper, faster and more secure,” the Governor said.
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