The Reserve Bank of India (RBI) is looking at a gradual implementation strategy to unveil the Central Bank Digital Currency (CBDC).
Finance Minister Nirmala Sitharaman had announced the launch of Central Bank Digital Currency (CBDC) in her budget speech. She informed that it would be unveiled in the current fiscal itself.
RBI has been exploring the pros and cons of introduction of the CBDCs for some time.
"As there are multiple compelling motivations for the introduction of CBDCs, RBI is currently engaged in working towards a phased implementation strategy, going step by step through various stages of pilots followed by the final launch, and simultaneously examining use cases that could be implemented with minimal or no disruption"
the bank said in a statement.
At the same time RBI noted that CBDC holds a lot of promise by way of ensuring transparency and low cost of operation, among other benefits and has the potential to expand the existing payment systems to address the needs of a wider category of users.
Moreover, the Central Bank said that while the intent of CBDC and the expected benefits are well understood it is important to identify innovative methods and compelling use cases that will make CBDC as attractive as cash if not more.
The statement further said that first a prototype as per the recommendations of the Working Group (WG) would be prepared and technical requirements would be specified to technology partners.
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