Reserve Bank of India: Phased retail and wholesale CBDC implementation still in the works
Ajay Kumar Choudhary Executive Director of fintech at the Reserve Bank of India (RBI) has said that the Central Bank is promising to the process of executing the rollout of the digital rupee.
The executive remarked while delivering a keynote address at the pickup Fintech Conference and Awards organized by the FICCI Ajay Kumar expressed that the RBI would leverage the Union Budget 2022-2023 that gives legal backing to the CBDC to implement it in a phased manner for wholesale and retail segments.
Also, Ajay Kumar added RBI is working on the phased implementation of a CBDC in both retail and Wholesale segments.
Ajay Kumar commended the fintech industry players for their contribution to the uptake of digital payments in India and reassured them of the Central banks of India's support during his speech.
The RBI expressed its aim to follow a step-by-step approach in launching the CBDC in its annual report published by the end of May.
RBI Governor T. Rabi Sankar noted that the approach is to ensure that there is no disruption of the financial and banking system.
Shankar shared the opinion that CBDCs can kill digital currencies During a Webinar hosted by IMF he mentioned that digital currencies do not have any value as they are not backed by any Government.
Furthermore, India's conviction on the beneficial prospects of CBDC, not all abusers are security of importance. The body said that the state-backed digital currencies do not offer consumers any benefits they do not already enjoy from digital payment channels and may see poor adoption.