Reserve Bank of India Is Working on ‘Phased Implementation’ of Central Bank Digital Currency – Regulation Bitcoin News

Please fol­low and like us:
Pin Share

India’s cen­tral bank, the Reserve Bank of India (RBI), is work­ing on a “phased imple­men­ta­tion of a cen­tral bank dig­i­tal cur­ren­cy (CBDC) in both whole­sale and retail seg­ments.” Nec­es­sary amend­ments have been made to the RBI Act, 1934 to allow the cen­tral bank to pilot and issue a dig­i­tal currency.

India’s Central Bank Digital Currency to Be Implemented in Phases

A Reserve Bank of India (RBI) offi­cial and the min­is­ter of state in the Min­istry of Finance have inde­pen­dent­ly pro­vid­ed an update on the cen­tral bank’s progress in issu­ing a cen­tral bank dig­i­tal cur­ren­cy (CBDC).

RBI Exec­u­tive Direc­tor Ajay Kumar Choud­hary was quot­ed by local media as say­ing dur­ing a keynote address at the PICUP Fin­tech Con­fer­ence and Awards on Wednesday:

RBI is work­ing on phased imple­men­ta­tion of a cen­tral bank dig­i­tal cur­ren­cy (CBDC) in both whole­sale and retail segments.

Pankaj Chaud­hary, min­is­ter of state in the Min­istry of Finance, sim­i­lar­ly told Rajya Sab­ha, the upper house of India’s par­lia­ment, Tues­day that the “RBI has start­ed the work for a phased imple­men­ta­tion of the announce­ment made … in the bud­get speech 2022–23.”

Indi­an Finance Min­is­ter Nir­mala Sithara­man announced the launch of the country’s CBDC in the Union Bud­get 2022–23. Nec­es­sary amend­ments were sub­se­quent­ly made to the RBI Act, 1934 with the pas­sage of the Finance Bill 2022 to allow the cen­tral bank to pilot and issue a CBDC.

In June, RBI Deputy Gov­er­nor T. Rabi Sankar said the cen­tral bank believes that “CBD­Cs would actu­al­ly be able to kill what­ev­er lit­tle case there could be for pri­vate cryp­tocur­ren­cies.” The Indi­an gov­ern­ment and the cen­tral bank refer to non-state-issued cryp­tocur­ren­cies, includ­ing bit­coin (BTC) and ether (ETH), as pri­vate cryp­tocur­ren­cies. The RBI also warned in May that cryp­to could lead to the dol­lar­iza­tion of a part of the Indi­an economy.

Ear­li­er this month, RBI Gov­er­nor Shak­tikan­ta Das said: “Cryp­tocur­ren­cies are a clear dan­ger. Any­thing that derives val­ue based on make-believe, with­out any under­ly­ing, is just spec­u­la­tion under a sophis­ti­cat­ed name.”

The Indi­an cen­tral bank has repeat­ed­ly stat­ed that cryp­tocur­ren­cies should be pro­hib­it­ed. How­ev­er, the country’s finance min­is­ter told par­lia­ment ear­li­er this week that “any leg­is­la­tion for reg­u­la­tion or for ban­ning can be effec­tive only after sig­nif­i­cant inter­na­tion­al col­lab­o­ra­tion on eval­u­a­tion of the risks and ben­e­fits and evo­lu­tion of com­mon tax­on­o­my and standards.”

Tags in this story
CBDC, cen­tral bank dig­i­tal cur­ren­cy, RBI, rbi cbdc, rbi cryp­to, rbi cryp­tocur­ren­cy, rbi dig­i­tal cur­ren­cy, RBI dig­i­tal rupee, Reserve Bank of India, Shak­tikan­ta Das, Shak­tikan­ta Das cbdc, Shak­tikan­ta Das cryp­to, Shak­tikan­ta Das cryptocurrency

What do you think about how the RBI plans to imple­ment a CBDC? Let us know in the com­ments sec­tion below.

Kevin Helms 

A stu­dent of Aus­tri­an Eco­nom­ics, Kevin found Bit­coin in 2011 and has been an evan­ge­list ever since. His inter­ests lie in Bit­coin secu­ri­ty, open-source sys­tems, net­work effects and the inter­sec­tion between eco­nom­ics and cryptography.




Image Cred­its: Shut­ter­stock, Pix­abay, Wiki Commons

Dis­claimer: This arti­cle is for infor­ma­tion­al pur­pos­es only. It is not a direct offer or solic­i­ta­tion of an offer to buy or sell, or a rec­om­men­da­tion or endorse­ment of any prod­ucts, ser­vices, or com­pa­nies. Bitcoin.com does not pro­vide invest­ment, tax, legal, or account­ing advice. Nei­ther the com­pa­ny nor the author is respon­si­ble, direct­ly or indi­rect­ly, for any dam­age or loss caused or alleged to be caused by or in con­nec­tion with the use of or reliance on any con­tent, goods or ser­vices men­tioned in this article.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *