India has released an updated report that will discuss every detail of the much anticipated digital rupee. In a recent statement by the Reserve bank in the country, the recently released report will talk about every detail of the digital rupee until its official rollout. Some of these details are the risks, benefits, and objectives, among other things, that the much anticipated CBDC will satisfy.
India wants to eliminate threats to the existing system
According to the Reserve bank of India, there has been a mountain of work over the last few years, which has been credited with helping them achieve their goal. The bank noted that the digital rupee would take the characteristics of the regular banknotes but with other added benefits. Some of these benefits include being easier to use and faster processing, among other things.
The report said that the bank was looking into making the implementation phased. This means there would have to be a series of pilot tests before the official unveiling can be done. During the tests, they would also try to look into several vital details, such as the use cases and other issues, so that the CBDC would be developed without little or no issues with the existing system.
RBI highlights the benefits of the CBDC
The bank mentioned that it would test the CBDC across multiple frameworks during the testing phase. This will help them figure out which one works best for the CBDC. After all the tests have been done, the bank can now develop a digital rupee that will work according to the purpose that they seek. The RBI looks at the list of technological frameworks the bank can use in the design. The Reserve bank of India is also looking to make the CBDC based on account, which means that it could be pointing toward the way of a retail design.
The bank has also lauded the implementation to provide maximum clarity and flexibility to transactions across the country. It also notes that it will help them increase the efficiency of the existing system by promoting ease of payment and other benefits that the regular payment networks lack. The bank mentioned that the first few pilot tests that will see the test of new use cases will be done in the coming months. However, the bank noted that it would need a big budget, meaning there should be massive funding for the project.