The vast majority of central banks around the world are working to develop their own central bank digital currency (CBDC). The objectives pursued are not the same in any case. If some governments want to take an active part in the development of this market, there are some whose goal is to create a CBDC to combat the growth of cryptocurrencies. This is the case in India. The country has from the beginning shown its opposition to the digital asset market. Recently, Rabi Sankar, deputy governor of the central bank, said he firmly believes that CBDCs can do this “killing” cryptocurrencies. According to him, the latter carry within themselves the germ of “Destabilization of monetary and fiscal stability”.
A CBDC programmed to outshine other cryptocurrencies?
On November 31, the Central Bank of India (RBI) announcement which will launch the 1uh November, the wholesale of digital rupees (CDBC-W). The CBDC-W is available for the settlement of transactions on the secondary market of government bonds. Allows limited access to certain financial institutions. It can also intervene in the settlement of interbank transactions. Authorities assure it will reduce transaction costs.
Furthermore, the RBI clarifies that the retail version of the Indian CBDC (CBDC-R) will be available within one month. A pilot project will also be launched in this direction. This pilot phase will lead to the deployment of CBDC-R to closed user groups, including customers and merchants. It can be used by everyone, including the private sector, non-financial consumers and businesses. It is an electronic version of the fiat currency in circulation.
The government has selected nine leading banks to distribute its cryptocurrencies in the territory. These are State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC.
While one of New Delhi’s primary goals is to curb cryptocurrency adoption, the country expects the digital rupee to support the digital economy. strengthens financial inclusion and making payment and money systems more efficient. Last month, RBI said its CBDC will be one of the most innovative in the world. It is based in particular on speed, efficiency, accessibility and affordable costs.
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Far from dulling my enthusiasm, a fruitless investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to transmit information relating to this ecosystem with my pen.