Report – Regulation Bitcoin News

Report – Regulation Bitcoin News

India’s central bank, the Reserve Bank of India (RBI), has reportedly asked four banks to pilot a central bank digital currency (CBDC) ahead of its public launch.

RBI to pilot Indian CBDC with public sector banks

The Reserve Bank of India (RBI), the country’s central bank, has reportedly asked four public sector banks to trial the Indian central bank digital currency (CBDC), Moneycontrol reported on Monday, citing two unnamed bank officials.

One official was quoted as saying:

RBI has asked State Bank of India, Punjab National Bank, Union Bank of India and Bank of Baroda to run the pilot internally.

“There is a pilot project on CBDCs,” another senior public sector bank official confirmed to the publication. “RBI may come with a launch this year. When exactly the product and specifications will be presented remains to be seen.”

The Reserve Bank of India is also reportedly consulting with several fintech companies about the digital rupee. Among them is US firm FIS, which has advised central banks on CBDC issues such as offline and programmable payments, financial inclusion and cross-border CBDC payments.

FIS senior director Julia Demidova told the newspaper last week:

FIS has had various engagements with the RBI… Our connected ecosystem could extend to the RBI to experiment with different CBDC options.

“Whether it is a wholesale or retail CBDC transaction, our technology can also be extended to commercial banks where they can test and tokenize central bank money in the form of digitally regulated money,” she added.

Indian Finance Minister Nirmala Sitharaman, announced while presenting the 2022 federal budget in February that the RBI would issue CBDC in this financial year. In May, the Central Bank announced that it would adopt “graded approach” to the launch of the digital rupee.

“The digital rupee will be a digital form of our physical rupee and will be regulated by the RBI. This will be such a system that will allow the exchange of physical currency with digital currency,” Indian Prime Minister Narendra Modi said earlier. explained.

Meanwhile, the RBI is pushing for a ban on all cryptocurrencies such as bitcoin and ether. RBI Deputy Governor T. Rabi Sankar he said earlier this year that cryptocurrencies have “no underlying cash flows” and “no intrinsic value,” adding that they are “akin to Ponzi schemes, and maybe even worse.” The central banker stressed, “Banning cryptocurrency is perhaps the most advisable choice for India.”

Tags in this story

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What do you think about RBI asking banks to pilot CBDC? Let us know in the comments section below.

Report – Regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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