Reserve Bank of India Governor Shaktikanta Das recently discussed India’s progress with central bank digital currency (CBDC). After almost a year of wholesale and retail CBDC pilots, he is even more convinced about the role of a digital rupee for cross border transactions. He also sees CBDCs as countering the attraction of stablecoins. Governor Das spoke during the World Bank Group – IMF Annual Meetings this month.
“On stablecoins – the fundamental question that begs an answer is whether the governments and central banks are comfortable with private currency. Currency is a sovereign function which the sovereign delegates to the central bank in a country like India. So therefore, are we comfortable with private currency? So these new technology products which are coming and styling themselves as great innovations, there are financial consequences,” said Governor Das.
He continued, “On such matters, whether it is stablecoins or cryptocurrencies or whatever you call it, I think we need to fully understand the risks before trying to legitimize them. We (need to) know before entering the water, how many sharks are there inside the water. Therefore CBDC is important. The world is moving towards technology.”
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
