{"id":120762,"date":"2021-07-23T19:47:58","date_gmt":"2021-07-23T14:17:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=120762"},"modified":"2021-07-23T19:47:58","modified_gmt":"2021-07-23T14:17:58","slug":"its-time-for-digital-currency-to-counter-crypto-says-rbi","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/its-time-for-digital-currency-to-counter-crypto-says-rbi\/","title":{"rendered":"It\u2019s time for digital currency to counter crypto, says RBI"},"content":{"rendered":"<p><strong>Source:<\/strong> <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/its-time-for-digital-currency-to-counter-crypto-says-rbi\/articleshow\/84662839.cms\" target=\"_blank\" rel=\"noopener\">TOI<\/a><\/span><\/p>\n<h5><strong>What is the news?<\/strong><\/h5>\n<p>The Reserve Bank of India (RBI) has said that it is working towards a phased implementation strategy for its digital currency (i.e. <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/forumias.com\/blog\/introducing-national-digital-currency-in-india-explained-pointwise\/#What_is_the_CBDC_or_National_Digital_currency\" target=\"_blank\" rel=\"noopener\">Central Bank Digital Currency<\/a><\/span>).<\/p>\n<ul>\n<li>Central banks across the world have drawn up plans to launch their digital currency to battle cryptocurrencies. China has said that its e-CNY has been tested in 70 million transactions.<\/li>\n<\/ul>\n<h5><strong>Why RBI wants a CBDC for India?<\/strong><\/h5>\n<ul>\n<li>It would <strong>reduce currency costs<\/strong> for the government and would help offset the threat of virtual currencies.<\/li>\n<li>Developing our own CBDC could provide the public with uses that any private virtual currency can provide, and to that extent might <strong>retain the public preference for the rupee.<\/strong><\/li>\n<li>It could also <strong>protect the public from the abnormal level of volatility <\/strong>that some of these virtual currencies experience.<\/li>\n<\/ul>\n<h5><strong>Issues<\/strong><\/h5>\n<ul>\n<li><strong>On the consequences of digital currencies on banks<\/strong>: While it could reduce the need for maintaining deposits, the impact would be limited as they cannot pay interest.<\/li>\n<li><strong>Key concerns<\/strong>: There are a few key concerns expressed by RBI:\n<ul>\n<li>Whether digital currency should be used in retail payments or also in wholesale payments?<\/li>\n<li>Whether it should be a distributed ledger or a centralized ledger?<\/li>\n<li>Further, whether it should be token-based or account-based?<\/li>\n<li>Lastly, whether it should be directly issuance by the RBI or through banks and the degree of anonymity?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>Terms to know<\/strong><\/span><strong>:<\/strong><\/p>\n<ul>\n<li><span style=\"color: #0000ff;\"><strong><a class=\"Hyperlink BCX0 SCXW174674012\" style=\"color: #0000ff;\" href=\"https:\/\/forumias.com\/blog\/introducing-national-digital-currency-in-india-explained-pointwise\/#What_is_the_CBDC_or_National_Digital_currency\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined BCX0 SCXW174674012\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun BCX0 SCXW174674012\" data-ccp-charstyle=\"Hyperlink\">Central bank Digital Currency (CBDC)<\/span><\/span><\/a><\/strong><\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Source: TOI What is the news? The Reserve Bank of India (RBI) has said that it is working towards a phased implementation strategy for its digital currency (i.e. Central Bank Digital Currency). Central banks across the world have drawn up plans to launch their digital currency to battle cryptocurrencies. China has said that its e-CNY&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/its-time-for-digital-currency-to-counter-crypto-says-rbi\/\">Continue reading <span class=\"screen-reader-text\">It\u2019s time for digital currency to counter crypto, says RBI<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[8362,2498],"class_list":["post-120762","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-cbdc","tag-cryptocurrency","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700777792,"cached_date":1704857659},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/120762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=120762"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/120762\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=120762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=120762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=120762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}