In the latest development on the digital currency status of the Central Bank of India, Deputy Governor T. Rabi Sankar today confirmed that the Reserve Bank of India (RBI) plans to launch their CBDC model by the end of 2021.
Sankar said, for now it is still difficult to determine the exact date. However, RBI will launch the CBDC model in the near future, possibly by the end of this year.
Amid the RBI’s crackdown on crypto, RBI Governor Shaktikanta Das warned that crypto could pose risks to institutions and even to individuals because it is not regulated. Further, he commented that the RBI has assembled a task force to study and analyze the occurring cases related to crypto.
So far data has been collected and the study is in its final phase. The results of the study will be submitted to the RBI at the end of August for follow -up action.
On that basis too, the RBI has shown interest in the CBDC. The RBI is determined to launch its own CBDC sooner than originally planned. Sankar also noted that once the operating model is decided, India will start implementing the use of CBDC in stages. Sankar also stressed that it was time for India to follow in the footsteps of major world countries.
Sankar cited the Bank of International Settlements (BIS) report which informed that 86% of central banks in the world are reviewing the CBDC, 60% are in the trial phase, and 14% of central banks are already in the practical phase.
