Reserve Bank of India to launch digital rupee pilot project | Crypto_NFT
Reserve Bank of India to launch digital rupee pilot project
The Reserve Bank of India (RBI) has published a report on national digital currencies. It says that a prototype digital rupee will be launched “soon.”
The Central Bank promised to periodically disclose information about its functions and benefits.
CBDC can be used in both wholesale and retail options as the regulator is looking into both options.
The paper says that several design models are being discussed. In a wholesale CBDC, it will be based on an account and issued by the Central Bank, in a retail one it will be based on tokens and managed by an intermediary.
The RBI mentioned the need for "reasonable privacy for low value transactions". This will ensure compliance with cash, which does not bring interest to the owners.
The Central Bank has not yet decided on the technology that will form the basis of CBDC. The document talks about the possibilities of adapting the blockchain as it develops.
The report explores various possibilities and aims to raise awareness of CBDCs with "strong arguments". The latter will make the digital rupee “as attractive as cash.”
The document also mentions the associated risks and indicates the need for a phased implementation of the pilot program.
