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RBI working on implementation of digital currency

July 23, 2021

RBI working on implementation of digital currency

The Reserve Bank is working on phased implementation methodology for its own advanced money and is currently launching it in discount and retail segments sooner rather than later, RBI Deputy Governor T Rabi Sankar said on Thursday. He said the possibility of Central Bank Digital Currency (CBDC) is ripe, and many central banks on the globe are workings towards it.

Sankar further said CBDC is expected to protect consumers from the “frightening degree of volatility” found in some of the virtual currencies which have no sovereign backing. He said central banks across the globe are occupied with investigating CBDCs, and a couple of nations have likewise presented such ideas. “Maybe the thought for CBDCs is close,” he said while taking an interest in an online discussion organized by The Vidhi Center for Legal Policy.

In India, a high level inter-ministerial committee established by the Ministry of Finance has analyzed the approach and legal frameworks, and has recommended the introduction of CBDC as a digital form of fiat money in the country.

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