Cryptocurrency: Due to the increasing trend of digital currency and lack of transparency in it, the Government of India including the Reserve Bank of India, the country’s central bank, has been expressing its concern from time to time. To put an end to all these speculations, the government is considering bringing digital currency under the ambit of law. At the same time, RBI is working rapidly on introducing its own digital currency.
The process to bring Central Bank Digital Currency (CBDC) has gained momentum. It can be a currency that will be completely digital, nothing like a note or a coin. Its pilot project may be launched soon. According to RBI officials, the pilot project will be launched by April in the first quarter of next year.
During a discussion at the Annual Banking and Economic Conference of the State Bank of India (State Bank of India), a top RBI official said that the central bank is working on its own digital currency and a pilot project will be launched soon.
Brainstorming on these facts
RBI Chief General Manager P. Vasudevan said on the question of RBI’s digital currency (Central bank digital currency-CBDC), Vasudevan said, “I think somewhere it was said that a pilot project could be launched at least by the first quarter of next year.
He also pointed out that various nuances related to CBCD are being looked into. It is no common thing to say that CBCD may become a habit from tomorrow. However, he also said that for this we have to be very vigilant and see if it can be implemented on a large scale or a small part. At the same time, its purpose should also be defined.
Indian digital currency, completely different from crypto
In simple terms, CBCD, the digital currency of RBI, can be used as commonly as our rupees. You can say that money will now be in a digital form. The Reserve Bank will issue this digital currency, CBCD. That is, the RBI will have control over its transactions. However, cryptocurrencies are not controlled by any bank or government. It is completely de-centralized. Crypto has nothing to do with the bank.