Lagatar24 Desk
New Delhi, Nov.19: A top central bank officer has suggested at the State Bank of India’s Banking and Economic Conclave that the Reserve Bank of India’s digital currency might see a test launch in the first quarter of the next fiscal year.
“I believe it was stated somewhere that a pilot could be launched by the first quarter of next year. So we’re optimistic about it,” P. Vasudevan, chief general manager of the RBI’s Department of Payment and Settlement, was reported in the Business Standard newspaper as saying.
Central bank digital currencies, or (CBDCs), are digital or virtual currencies that are essentially digital versions of fiat currencies, such as the rupee in India.
The governor of the central bank had previously stated that a soft launch of the CBDC may be expected by December, but the RBI has yet to commit to a specific date.
“We are on the job and we are looking into the various issues and nuances related to CBDC. It’s not a simple thing to just say that CBDC can be a habit from tomorrow on,” Vasudevan said, adding that a CBDC could have a useful role depending on how it is implemented and there should be no hurry to launch it.
The RBI, according to Vasudevan, is looking into a number of concerns, including whether the CBDC should focus on wholesale or retail, the validation procedure, and other issues such as distribution routes.
“The central bank is also looking into whether middlemen can be eliminated entirely, and, more critically, whether technology can be decentralised or semi-centralized,” the RBI CGM said.
The Reserve Bank of India has often expressed worry about cryptocurrencies being a threat to macroeconomic and financial stability.
