Reserve Bank of India (RBI) Governor Shaktikanta Das has once again reiterated his positive stance on Central Bank Digital Currency (CBDC), highlighting the potential efficacy of India’s Digital Rupee. In addition, he lauded the development and said that it could be used to avoid potential uncertainties related to cryptocurrency, echoing his previous stance on digital assets.
RBI Governor Backs CBDC As A Shield Against Crypto Risks
RBI Governor Shaktikanta Das has been a long-supporter of the Indian Digital Rupee. According to a recent report, he once again highlighted the importance of CBDC in avoiding the uncertain landscape, that he claims was created by cryptocurrencies.
In addition, he noted that CBDC could be a more stable and controlled digital currency for India. It could potentially minimize the volatility and risks associated with other crypto like Bitcoin, Ethereum, and others.
The recent report also highlighted Das’s focus on modernizing cross-border payments. “Remittances are vital for emerging economies like India,” he said, calling for reductions in both cost and processing time for international transactions.
Meanwhile, he outlined how CBDCs could act as a game-changer, enabling faster and more efficient cross-border peer-to-peer (P2P) payments. India, which operates a 24Ă—7 real-time gross settlement (RTGS) system, is exploring the expansion of this system for settling trades in major global currencies such as the US Dollar, Euro, and British Pound, he added.
According to Das, the feasibility of this expansion is under review through bilateral or multilateral arrangements. It focuses on simplifying global transactions. The governor believes CBDCs could be integrated into such efforts, further boosting their utility and scope.
Cross-Border Payment And AI Risks
RBI Governor also shed light on the ongoing pilot programs that focus on exploring the efficacy of India’s CBDC. These pilot explores the programmability and interoperability with India’s UPI program. Das said that “CBDCs present a unique opportunity for India to lead in cross-border payments.”
However, he acknowledged the challenges of developing a universal CBDC framework. Besides, he has also raised concerns over the misuse of artificial intelligence (AI) within the financial sector. He warned that AI, while powerful, could expose banks to greater risks like cyberattacks and data breaches.
Meanwhile, the RBI Governor has been vocal about CBDC for a long and has taken a hawkish stance towards other crypto like Bitcoin and other top altcoins. However, in July, RBI and SEBI joined hands to create a comprehensive crypto policy for the nation.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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