Lagatar24 Desk
New Delhi, Dec.8: RBI Governor Shaktikanta Das highlighted cyber security and digital frauds as the primary difficulties in the new system as the RBI draws closer to launching the central bank digital currency (CBDC).
T Rabi Sankar, Deputy Governor, stated there are two sorts of CBDCs: wholesale and retail, and that the former has seen a lot of development, while the latter has been described as a “complex” component that will take time.
The RBI said earlier this year that it had begun work on the CBDC, following in the footsteps of other major central banks across the world that are considering a fiat digital currency. According to a report, the RBI plans to begin pilot exercises on the same front in the first quarter of next year.
“Main concern comes from the angle of cybersecurity and possibility of digital frauds. We have to be very careful about that,” Das told the media in the post-policy interaction.
Das noted that there were concerns about fake currency a few years ago, and that similar issues could arise with the launch of the CBDC, which must be avoided by putting in place the required firewalls and security architecture.
Sankar noted that the CBDC will be an electronic counterpart of the current paper-based currency, citing “serious problems” such as digital fraud and cyber dangers.
“In the wholesale account-based world, a lot of work has been done, but retail is more sophisticated and will take time. We’ll release it for a pilot as soon as any of them is ready,” he added.
Das had previously hinted at a CBDC soft launch by the end of December 2021.
