On Thursday, the Reserve Bank of India (RBI), announced that preparations might be made for its Central Bank Digital Currency trial (CBDC), before the end of 2018. CNBC’s Shaktikanta Das explained to CNBC that while other central banks have established their digital currencies, the RBI is still taking its time. He stated:
“We are extremely cautious about it because this is a completely new product, not only for RBI but worldwide.”
Das explained that the RBI is currently studying the pros and cons to adopting a cryptocurrency. The bank would assess the impact of digital currency on security, finances, currency circulation and country’s monetary policies. The bank would evaluate the technology benefits of a central or decentralized ledger to the CBDC.
Around the globe, central banks have begun or are well into the creation of digital currencies. This development follows global financial institutions such as the Bank for International Settlements that are pushing for CBDCs to replace private stablecoins or cryptocurrencies. A reportby Atlantic Council in July showed that 90% of global gross domestic products are from countries at different stages of CBDC exploration.
China is leading the way in CBDC exploration, with many pilot programs in place to increase the adoption of its electronic currency. The plans to create their digital currencies are being closely followed by other Asian countries.
