Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Indian central bank looking at phased launch of its own digital currency

07/23/2021 | 08:20am EDT
FILE PHOTO: The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai

MUMBAI (Reuters) - The Reserve Bank of India is considering a phased introduction of its own central bank digital currency (CBDC), deputy governor T. Rabi Shankar said, and is examining various issues including the underlying technology and issuance method.

"CBDCs are likely to be in the arsenal of every central bank going forward. Setting this up will require careful calibration and a nuanced approach in implementation," Shankar said according to a speech released late on Thursday.

"As is said, every idea will have to wait for its time. Perhaps the time for CBDCs is nigh," he added.

According to a 2021 survey by the Bank for International Settlements, 86% central banks were actively researching the potential for CBDCs, 60% were experimenting with the technology and 14% were deploying pilot projects.

China leads the space and has already started trials of a digital currency in several cities while the U.S. Federal Reserve and Bank of England are looking into it for a future launch.

RBI has been working on the idea of CBDC for years. Virtual currencies (VCs) like bitcoin have gained popularity in India in recent years and unofficial estimates suggest the country has around 15 million investors holding over 100 billion rupees ($1.34 billion) in crypto assets.

The RBI has repeatedly voiced its concern over the spread and use of cryptocurrencies which it sought to outlaw in April 2018. It had to withdraw the ban in March 2020 when the country's top court said the move was unconstitutional.

"CBDCs are desirable not just for the benefits they create in payments systems, but also might be necessary to protect the general public in an environment of volatile private VCs," Shankar said with regards to the need for CBDCs for emerging economies.

Sameer Narang, chief economist at Bank of Baroda said investors would still look to private digital currencies, which have appreciated in value despite recent falls.

"Some users may want to use the private digital currencies as store of value and not only for payments," he added.

($1 = 74.4080 Indian rupees)

(Reporting by Swati Bhat; editing by Philippa Fletcher)

By Swati Bhat


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BANK OF BARODA -2.14% 77.9 End-of-day quote.26.67%
BANK OF INDIA LIMITED -1.19% 54 End-of-day quote.11.00%
BITCOIN - EURO -6.28% 35780.02 Real-time Quote.61.73%
BITCOIN - UNITED STATES DOLLAR -6.44% 41932.53 Real-time Quote.55.13%
Latest news "Economy & Forex"
01:36pBiden discusses Indian Bidens with Modi, and asks 'Are we related?'
RE
01:36pEXCLUSIVE : Oil producer Hilcorp eyes purchase of shut Louisiana refinery -sources
RE
01:30pCHINA EVERGRANDE NEW ENERGY VEHICLE : Europe shares fall, Wall St pauses as Evergrande fears hover; U.S. yields rise
RE
01:18pShares in Russia's Novatek recover from fall after executive's U.S. arrest
RE
01:13pHuawei CFO, U.S. reach agreement to resolve bank fraud charges
RE
01:11pItaly to Launch Three New Government Bonds in 4Q
DJ
01:10pU.S. new home sales beat expectations; supply near 13-year high
RE
01:07pFactbox-Ready to taper or waiting for more data? Recent Fed officials' comments
RE
01:05pCATHIE WOOD : Chinese crackdown on bitcoin another blow to Cathie Wood's ARK ETF
RE
01:02pU.S. drillers add oil and gas rigs for 14th month in a row -Baker Hughes
RE
Latest news "Economy & Forex"