22 July, 2021
RBI is eyeing at introducing it’s own version of CBDC in a phased manner as it requires legal changes to be made in the nation’s foreign exchange rules and information technology laws said, Deputy Governor T. Rabi Sankar, according to Business Standard.
RBI has been gauging pros and cons of CBDCs for quite some time now. The governor also added that policymakers are also considering running a pilot program for the CBDC to know whether they can be used in retail payments or also in wholesale payments.
“India’s high currency to GDP ratio holds out another benefit of CBDCs. To the extent large cash usage can be replaced by CBDCs, the cost of printing, transporting, storing, and distributing currency can be reduced,” he said.
However the wider adoption of it will likely take some time as the majority of the population are not tech-savvy enough and also there are risks of cybercrime.