New Delhi: It’s no secret that the Reserve Bank of India (RBI) has been doubling down on its efforts to launch a central bank digital currency (CBDC) or what could be known as a digital rupee in the coming future.
Now, the central bank’s governor Shaktikanta Das has revealed that the pilot of the central bank digital currency could begin as early as December 2021. “The Reserve Bank of India may launch its first digital currency trial programs by December," Das told CNBC in an interview.
He also pointed out that the RBI is extremely careful about the project since it’s completely a new product ‘not just for RBI, but globally’. “I think by the end of the year, we should be able to — we would be in a position, perhaps — to start our first trials," he was quoted as saying.
What are Central bank digital currencies or CBDCs?
CBDCs are basically virtual currencies usually issued by the same authority that is in charge of managing the fiat currency in a country. In simple words, CBDCs are just digital versions of fiat currencies.
At present, the RBI is understanding the various aspects of CBDCs. The central bank is studying coin’s security, impact on the financial sector, monetary policy and currency that is already in circulation. Also Read: Odisha approves Electric Vehicle Policy, state to offer incentives, interest-free loans on EV purchase
During the interview, Das also pointed out that the RBI “is also exploring the choice between having a centralized ledger for the digital currency or the so-called distributed ledger technology (DLT).” Also Read: Railways recruitment: Pune police arrest one involved in fake job racket
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