India’s RBI working towards a phased implementation of CBDC

The Governor of the Central Bank of India talked about the Central Bank Digital Currency (CBDCs) development works, during his speech at the Global Fintech Festival.

India is a tech-adaptive country and the Reserve Bank of India (RBI), which is the central bank of the nation, has been working on blockchain technology adoption in the payment system for many years. However, RBI believes in blockchain technology but does not love crypto. Once RBI imposed a banking services ban on all crypto companies but later the Supreme court of India rejected the decision of RBI and ordered all banks to provide services to crypto platforms.

On 20 September, During a speech at the Global Fintech Festival in Mumbai, Shaktikanta Das, the Governor of the Reserve Bank of India, said that tech innovation and fintech companies are working to bring innovations to the country. On the other hand, RBI will start issuing digital rupees, or say Central Bank Digital Currency (CBDC), during the current fiscal year.

Shaktikanta said:

“Technology, innovation, and fintech are working in tandem and contributing to the dynamism of this sector.”

Further, he added that a new Fintech company under RBI will help to create innovations to boost this sector and implement CBDCs.

“We have created a new FinTech Department in the RBI from January 2022 to give focused attention to this evolving and dynamic sector. Further, the RBI is now actively working towards a phased implementation of Central Bank Digital Currency (CBDC) in both wholesale and retail segments.”

It is interesting to note that here Indian Central Bank is planning to introduce two different kinds of CBDCs, one for banking institutions and the other for retail users. 

However Indian Central Bank is not in favor of crypto adoption but still, Indian finance minister Nirmala Sitharaman supported this industry as a new tax source for the government and also once she said that people should wait for a better regulatory framework because it will take time.

Read also: U.S. Treasury Department asking for public opinion on crypto illegal use