Reserve Bank of India examines the need for CBDC implementation

The Reserve Bank of India (RBI) has said it is looking into the need to develop a digital currency. In publicationThe Central Bank on payment systems reported that if the RBI sees the need to launch a digital rupee, it will begin research in this direction, reports theblockcrypto.com.

The Central Bank noted that private digitalCurrencies, cryptocurrencies and virtual currencies are gaining traction around the world, but regulators in India are skeptical about them due to the risks involved. However, RBI will investigate the need for a digital version of fiat currency and, if necessary, will begin researching methods for its implementation.

RBI Announces Research Not for the First Timedigital currencies. Back in 2018, the Central Bank announced the creation of an interdepartmental group to study the need to launch a national CBDC to optimize the financial system. In 2019, the head of the Reserve Bank said that it was too early for CBDC due to technological problems, but in the future the regulator would consider this issue.

RBI's position on cryptocurrencies has not changed -cryptocurrencies violate the exclusive right of the state to issue a currency and therefore should be prohibited. At the same time, regulators understand the importance of digital payments, and in India they even launched a pilot project to develop offline solutions for regions with poor quality or lack of Internet.

In the meantime, RBI is only studying the need to develop a digital rupee, China is already preparing the next city for testing the digital yuan - a new distribution of CBDC will be held in Chengdu.

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