India"s Central Bank Digital Currency Will Act as Alternative to Cryptocurrency, Says RBI Official
An official of India’s central bank, the Reserve Bank of India (RBI), says that the country’s central bank digital currency (CBDC) will act as an alternative to cryptocurrency. He stressed that the digital rupee must possess all the attributes of physical currency, including anonymity. India’s CBDC Update
Reserve Bank of India (RBI) Executive Director Ajay Kumar Choudhary provided some updates on India’s central bank digital currency (CBDC) during an interview with CNBC-TV18 on Friday.
The Indian central bank is exploring the offline functionality of the digital rupee, Choudhary conveyed. Noting that the CBDC will soon become a medium of exchange in India, he emphasized that it needs to have all features of physical currency, including anonymity. The RBI executive director previously said the design of India’s CBDC will be the least disruptive and will not replace physical currency or the current financial system.
Choudhary further told the news outlet that the digital rupee will provide the public with a digital form of money and will act as an alternative to cryptocurrencies. His statement echoed RBI Deputy Governor T. Rabi Sankar’s recent claim that the digital rupee should be able to do anything cryptocurrency can do but without the associated risks of crypto.
India’s central bank began piloting its digital rupee in the wholesale sector in November and in the retail sector in December last year. Reliance Retail became the first retailer to accept digital rupees. Last month, Sankar revealed that the digital rupee now has over 50,000 users and is accepted by 5,000 merchants.
RBI Governor Shaktikanta Das said in December last year that the CBDC is the currency of the future. He clarified that India’s existing instant real-time payment system, the Unified Payments Interface (UPI), relies on banks as intermediaries, whereas a CBDC functions more like physical currency notes with an automated sweep in and out feature.
Meanwhile, the RBI continues to recommend a complete ban on cryptocurrencies, including bitcoin and ether. Das has warned that crypto poses major risks to India’s financial stability, monetary system, and cyber security. Moreover, he cautioned that it could undermine the central bank’s authority. Tags in this story CBDC, central bank digital currency, digital rupee, digital rupee cryptocurrencies, India, india cbdc, India CBDC competes cryptocurrency, RBI, rbi crypto, rbi digital currency
What do you think about the RBI executive director’s statements about the digital rupee? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Digital Assets Under Management 5.25% Higher in February — Grayscale Still "Most Dominant Player" FEATURED | 6 mins ago HSBC, Nationwide Impose New Restrictions on Cryptocurrency Purchases in UK FEATURED | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCoinbase Acquires One River Digital to Expand Institutional Access to Crypto Assets Next articleWarren Buffett-Backed Neobank Nubank Launches Own Currency Nucoin Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits
As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design