Seeing the current change that blockchain is introducing to national finance, the Reserve Bank of India has revealed its positive disposition towards CBDC.
Last month, Rabi Sankar—the Deputy Governor of the bank—made the public aware that the bank is looking into a phased implementation strategy of its CBDC.
There is now progress concerning that. In the last Post-Monetary Policy Committee Meeting of the Reserved Bank of India, it showed its intention to figure out a model for its CBDC before this year runs out.
The spokesman would have been more definite about the date. However, he mentioned that the bank is still looking into several technological considerations like piloting, the validation mechanism, and scope.
Moreso, he remarked about the fact that the bank is working on how it would implement CBDC and it wouldn’t affect or reduce the clientelé of the traditional banks around. Therefore, the RBI is hoping to build the CBDC as a complement to synergize blockchain with traditional finance.
The RBI is reportedly working out a CBDC in its quest to replace cryptocurrencies. Because as it were, the bank has made it clear that it discourages the citizens from investing or trading it.
“It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different,” the Deputy said while explaining how CBDC is a legal tender.