RBI may launch digital currency pilot next year: Report

According to a publication, a top central bank officer suggested at the State Bank of India’s Banking and Economic Conclave that the Reserve Bank of India’s digital currency might see a test launch in the first quarter of the next fiscal year.

“I think it was mentioned somewhere that a pilot could be launched by the first quarter of next year. So we’re bullish about it “P. Vasudevan, chief general manager of the RBI’s Department of Payment and Settlement, was reported in the Business Standard newspaper as saying.

Central bank digital currencies, or (CBDCs), are digital or virtual currencies that are essentially digital versions of fiat currencies, such as the rupee in India.

The governor of the central bank had previously stated that a soft launch of the CBDC may be expected by December, but the RBI has yet to commit to a specific date.

“We are on the job and we are looking into the various issues and nuances related to CBDC. It’s not a simple thing to just say that CBDC can be a habit from tomorrow on,”According to Vasudevan, a CBDC could play a valuable function depending on how it is implemented, and there should be no rush to get it up and running.

The RBI, according to Vasudevan, is looking into a number of concerns, including whether the CBDC should focus on wholesale or retail, the validation procedure, and other issues such as distribution routes.

“The central bank is also checking if intermediaries can be bypassed altogether, and most importantly, checking if the technology should be decentralized or should be semi-centralised,” the RBI CGM said.

The Reserve Bank of India has often expressed worry about cryptocurrencies being a threat to macroeconomic and financial stability.

Despite the fact that the value of cryptocurrency transactions and trading has increased in recent months, Das believes the number of accounts being advertised is exaggerated, as 70% to 80% of these accounts are engaged in relatively low-value transactions.

“When the Reserve Bank of India as the central bank of the country … says there are very serious concerns about macro-economic and financial stability, it means there is a need for much deeper discussions,” Das said.