NEW DELHI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday said there is a perceptible change in the thinking with regard to central bank digital currency (CBDC) as it is being recognized by several countries and has great potential in making cross border payments in a smoother and convenient way.
During the media briefing at the G20 summit of finance ministers and central governors in Gandhinagar, the RBI Governor said, “There is a perceptible change in the thinking with regard to central bank digital currency (CBDC). It’s now recognised by a large number of countries. CBDC is an important aspect that needs to be looked at more seriously. As a part of FMCBG deliberations, it was recognized that CBDC has great potential in cross border payments in a smoother and easier way.”
He further added that the International Monetary Fund (IMF) is also working towards micro financial
challenges rising out of CBDC which will also be factored in. “CBDC is a new currency and it needs a fundamental change in the currency system, in the system of money across the world. The digital currency is a part of the process and these things take time.
Earlier UPI (unified payments interface) was confined to only some banks but nobody imagined that there would be 30 crore transactions per day,” the RBI Governor stated while expressing hopes that CBDC would pick up like UPI in the coming years.
Central bank digital currency or CBDC is an electronic form of sovereign currency and currently, the central bank is conducting a pilot programme of two versions of digital rupee – CBDC wholesale and CBDC retail.
Meanwhile, finance minister Nirmala Sitharaman told the media that the discussion on crypto is widening, and that global understanding is required for the regulation of the cryptocurrency. “That was a rich discussion and there was recognition that the round table actually gave a lot of inputs to think and many people dropped a new dimension to the discussion,” Sitharaman added.