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RBI plans digital currency pilots

RBI plans digital currency pilots

The Reserve Bank of India (RBI) is planning pilot projects to assess the viability of using digital currency to make wholesale and retail payments, with a view to launching a full-scale central bank digital currency (CBDC).

RBI Deputy Governor T. Rabi Sankar said: “Every idea has to wait for its time, perhaps the time for a CBDC is here. Like other central banks, we have also been exploring the pros and cons of this for quite some time.”

He said an official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.

He said: “Some key issues are being examined: whether they should be used in retail or wholesale payments, the underlying technology, if the validation mechanism should be token-based, etc. Conducting pilots in wholesale and retail segments may be a possibility in the near future.”