Indian Reserve Bank will launch a pilot project of digital rupees
The Reserve Bank of India (RBI) published a report on national digital currencies. It says that the prototype of digital rupees will be launched “in the near future”.
The Central Bank promised to periodically disclose information about its functions and advantages.
CBDC can be used both in wholesale and retail versions, since the regulator studies both options.
The document says that several design models are discussed. In the wholesale CBDC, it will be based on an account and produced by the Central Bank, in retail – based on tokens and controlled by an intermediary.
RBI mentioned the need for “reasonable confidentiality for transactions with a small cost”. Thus, compliance with cash will be ensured that the owners do not bring interest.
The Central Bank has not yet decided on the technology that forms the basis of CBDC. The document refers to the possibilities of adaptation of blockchain as it develops.
The report explores various options and is aimed at increasing the awareness of CBDC with “good arguments”. The latter will make digital rupees “as attractive as cash”.
The document also mentioned risks and indicates the need for a phased implementation of the pilot program.
Recall that the Reserve Bank of India began studying the potential of digital rupee in early 2021.
In June of Trusocompetger Rbi T. Rabbi Sankar suggested that CBDC can completely displace private virtual currencies, including bitcoin.
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