India may have been battling with uncertainties especially concerning its crypto regulations, however, its central bank, the Reserve Bank of India (RBI), has now shown interest in offering basic models of a central bank-issued digital currency (CBDC). Only after this, would it start introducing a more sophisticated version.
RBI Becoming More Open-minded About Crypto?
A Tuesday publication dubbed “Trend and Progress of Banking in India 2020-21″ has also shed more light on the approach that the RBI is taking on a CBDC.
Interestingly, this development is a major indication that the RBI might now be softening its stance on cryptocurrency-related activities, having been absolutely against it in the past. The publication reads;
“A CBDC in its simplest form would provide a safe, robust, and even more convenient alternative to physical cash. And would also offer better scalability, liquidity, and more ease of transactions than other existing forms of money.”
The strategy being employed by the RBI is to first introduce the CBDC in its simplest model and test it extensively in the process, to analyze the degree of impact it has on the banking system and monetary policies.
Speaking about the potential impact of a CBDC on “macroeconomic policymaking,” the report also highlights how India has made good progress in payment systems, which will ultimately act as support when it’s time to roll out a more sophisticated CBDC to citizens and financial institutions.
Meanwhile, questions are being asked regarding whether the CBDC would only be useful for retail purposes (CBDC-R), or wholesale use (CBDC-W).
In his response, the RBI’s Deputy Governor, T Rabi Shankar says both types of CBDC are presently being considered. But then he added that while a lot of work has been done on the wholesale CBDC, the retail-based one is proving to be more cumbersome and will take some more time. Shankar then confirmed that whichever of the two, that gets ready first will be released for pilot testing immediately.
- Goldman Sachs Says Mainstream Crypto Adoption Not Enough to Boost Bitcoin (BTC) Price
- Fidelity Eyes for ETFs Tied to Metaverse After the SEC Rejects Its Spot Bitcoin ETF
- Rio De Jeneiro’s Mayor Reveals 1%Of Its Treasury Reserves Will Be Poured Into Cryptocurrencies
- Fake Grimacecoin Jumps 285,000% After McDonald’s’ Response to Elon Musk Tweet
- Turkey President Tayyip Erdoğan Orders For Metaverse Research
- After Twitter, Reddit Might Allow Users To Add NFT as Profile Picture
- Facebook’s Bumbling Crypto Venture Diem to Wind Down, Sell Assets
- Breaking: Valkyrie Planning To List Bitcoin Mining ETF On NASDAQ
- Just-In: OpenSea Reportedly Planning to Integrate Solana And Phantom Wallet
- Can Bitcoin’s Price Hit $1 Million? Ark Invest Is Confident It Can Happen In 2030
- Solana Creeps Higher, Looks To Revisit January Highs AT $177.0
- Ethereum Price Analysis: Fibonacci Retracement level 0.618 Triggers Recovery Rally In ETH Coin
- BTC Price Analysis: Death Crossover Brings Nightmares On Satoshi Street; Is This A Buying Opportunity?
- Bitcoin Death Cross Haunting Investors, Will BTC Make or Break?
- DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?
- Terra Price Analysis: Will LUNA Price Bounce Back at 0.382 Fibonacci Retracement?
- SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?
- LINK Price Analysis: Chainlink price reclaims 200-day EMA, Emerging trendline Suggests More Upward Price Movement
- Harmony Price Analysis: Rising Parallel Pattern Could Lead 30% Growth In $ONE Price
- Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?