RBI is the short name of Reserve Bank of India and its a government body in India that takes care of all the financial things in the country. Undoubtedly its a strong part of the government, because they are the ones who draft policies and rules to strengthen the Indian economy, and their rule, is crucial. RBI has been working on CDBC silently as they have not ever shared an official circular about it. Based on the update from internal sources we get to hear the progress and its like to get launched in the next year 2022. There are many countries exploring the possibilities with digital money. There is a difference between crypto and digital money because this form of digital money will be completed controlled by the government. Its centralized ecosystem and govt will have control in circulation and issuance. Crypto is just the opposite of it which is decentralized and govt has no control over it.
The Reserve Bank of India's digital currency may see its pilot launch in the first quarter of the next fiscal year, a senior central bank official said at the State Bank of India's Banking and Economic Conclave as reported by a newspaper.
Things are going digital which is the need of time because now technology is playing an important role in our life so having fiat in digital form is surely required. I keep a close eye on the same to see how things are moving. Its era economy is driven by digital and technological innovations and digitization is one of these.
Be it crypto or CBDC, both are backed by the technology and we would not be able to use both in physical form. RBI has not been in favor of crypto since the beginning and they have even tried to ban it but then the court intervene and canceled their order. Good that RBI is moving with digital currency however they have the same stand with crypto.
Recently govt parliament committee had a meet-up with Indian crypto exchanges and some leaders to discuss crypto and the outcome was positive. They realized that crypto can't be banned so the only way to go ahead is to regulate it. This is good because now the regulation is required to bring more development and increased adoption in the country.
Even there should be a possibility to buy crypto using CDBC then things will be amazing and this will also contribute to better economic growth through crypto and the digital economy.
Having CDBC will contribute to cost-effective currency management where it will reduce the printing and distribution cost. Having digital money does not mean that physical currency will not be there instead there will be an option to use both.
Since not everyone in the country would be able to use digital money so they would be able to use physical however having a digital option will enable businesses to process faster transactions and also empower the digital economy. I look forward to the day when RBI is going to announce the launch of CDBC and thats will be a great day for the country.
Thank you so much
