Saw many threats from crypto; CBDC was the way forward: RBI DG Sankar

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After observing an environment in which the evolution of private currencies posed a threat to investors, systems, and the economy, the Reserve Bank of India felt that the manner to deal with it was to provide a digital currency, Deputy Governor T. Rabi Sankar said.

His comments came two days after the central bank launched a pilot project for retail CBDC (central bank digital currency).

“We saw an environment where private currencies were evolving. We realised that this poses a threat to investors, systems, and the economy. We also realised that private currencies have shown that digitalising currency can possibly benefit,” Sankar