Currency creation

RBI should be careful in launching a digital currency

In a recent speech, Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar said the central bank was considering introducing a central bank digital currency (CBDC) in a phased manner with pilot schemes in “the near future”. The implementation of the proposal will require legislation and has the potential of changing the financial environment drastically. A CBDC would perhaps be a digital rupee, exchangeable one-to-one with physical, or electronic rupees. It would offer a more secure and stable alternative to popular cryptocurrencies. But there are many complex issues involved in launching a CBDC since it would have a bearing