India’s central bank is considering launching a digital currency, according to a top executive, giving a clear indication of its intentions for the

India considering phased roll out of central bank digital currency

submited by

Style Pass

2021-07-22 17:00:07

India’s central bank is considering launching a digital currency, according to a top executive, giving a clear indication of its intentions for the first time after previously stating that it was studying the idea.

T Rabi Sankar, the deputy governor of Reserve Bank of India, said at a conference today that the central bank is considering introducing the nation’s digital currency in a “phased” manner while legal changes are made to the South Asian nation’s foreign-exchange rules and IT laws.

The digital currency, which will be backed by sovereign, will lower the economy’s reliance on cash, enable cheaper and smoother international settlements, and protect people from the volatility of privacy cryptocurrencies, he said.

“Every idea has to wait for its time, and the time for CBDC [central bank digital currency] is near. We have carefully evaluated the risks,” he told an audience at a conference held by think-tank Vidhi Centre for Legal Policy.

Sankar said the central bank’s “endeavor is that as we move forward [with the plan],” so that India’s digital currency “can reiterate its leadership position in payment systems of the world.”