CBDC India: RBI plans to launch digital Fiat model before 2022

By Palak Malhotra
Published August 6, 2021 Updated August 6, 2021
Best Buy In

DeFi Platform

Exchanges

Wallet

CBDC India: RBI plans to launch digital Fiat model before 2022

By Palak Malhotra
Published August 6, 2021 Updated August 6, 2021

In a recent development about the status of India’s Central Bank Digital Currency, Deputy Governor T. Rabi Sankar confirmed today that the Reserve Bank of India (RBI) is planning to launch its model for operations of fiat digital currencies by the end of 2021.

“It will be difficult to pin a date on it (introducing DC). We should be able to come out with a model shortly, probably by the end of this year,” Sankar told reporters at the post-policy review press conference.

Digital lenders suicide rate data

Amid RBI’s crypto crackdown, RBI Governor Shaktikanta Das warned against the risks of private, unregulated cryptocurrencies. Furthermore, he shared that the RBI had gathered a task force to study and analyze the suicide rate of borrowers online due to the digital lender system. He updated the press that the study is in the final stage and will be submitted to the RBI by the end of August for decision-making to take foreseeable action.

Phased rollout of RBI’s CBDC

Deputy Governor T. Rabi Sankar’s 22nd July speech already made it clear that RBI is determined to launch its own CBDC sooner than later. Sankar also stated that once the operation model is decided, India will look at a phased introduction of its digital currency. He highlighted that it is high time India hops on to the CBDC wagon, as first-world countries are already passing their initial phases of digital currency launches.

Sankar mentioned the Bank of International Settlements (BIS) report to highlight that 86% of central banks in the world are researching CBDC, 60% are experimenting with it, and 14% of central banks are already in the pilot testing phase.

“RBI has been exploring the pros and cons of the introduction of CBDCs for quite some time…RBI is currently working towards a phased implementation strategy and examining use cases which could be implemented with little or no disruption to India’s banking or monetary systems.”, said Sankar.

 

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Palak Malhotra
408 Articles
Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

Loading Next Story