India joins ranks of developing countries that are planning to launch a Central Bank digital currency or CBDC. The Reserve Bank of India – RBI- will be initiating the CBDC trials by the end of 2021.
Shaktikanta Das, the Governor of RBI, recently conducted an interview with CNBC mentioning that the institution is currently studying different digital currency aspects, all for the purpose of conducting the safest and most successful CBDC trials. The head of the bank also revealed that one of the main concerns is security and the currency’s impact on the Indian financial sector.
In the interview, he revealed that his team is very careful due to the novelty of the product. He revealed that they are currently studying all the possible effects of the digital currency including its inevitable impacts on monetary policy.
Currently, India is one of the biggest crypto nations on the globe. In the last year or so Indian cryptocurrency industry has rapidly increased.
Yet investors are still reluctant to trust any potential regulations as well as a central bank digital currency. Despite the cautionary attitude, the Reserve Bank of India will adopt a blockchain technology, and will continue on with its plans on launching a CBDC.
Central Bank digital currency interest has spiked over the last year or so, mainly because Ledger technology has been made vastly available to a huge audience. Currently, some of the biggest nations in the world are actively competing with each other to be the first to reach a functioning CBDC model. Indeed, China has taken the first position.