The Reserve Bank of India’s (RBI) central bank digital currency (CBDC) is no new thing. Hence many prophecies are being made regarding it. On the budget session of February 2022, Union Finance Minister, Nirmala Sitharaman had first discussed on launching CBDCs, since then there has been a curiosity to know the impacts of digital currency on different sectors.
Jaya Vaidhyanathan, CEO, BCT Digital said, “The Reserve Bank of India’s (RBI) decision to introduce the Central Bank Digital Currency (CBDC) is grounded in providing a regulated alternative to cryptocurrencies in the market, thus countering the volatility and safety issues seen in private cryptocurrencies. Since the CBDC is issued by the RBI, the expectation is that it may not be affected by the wild fluctuations usually seen in cryptocurrencies the world over. We may see concrete developments as early as FY23, but the process of launching CBDC as a whole is deliberately paced gradual so as to ensure minimal disruption to India’s financial services market.”