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India releases new CBDC update

TL;DR

  • India rolls out new CBDC update
  • RBI wants CBDC to mirror its physics cash
  • RBI executive push for a crypto ban

India has announced that its upcoming CBDC will satisfy all the attributes of its physical form of legal tender. In a detailed update given by an executive of its premier bank at an interview, it was confirmed that the CBDC would be used as a substitute for cash in the country. The executive, Ajay Choudhary, explained the basic updates regarding the upcoming digital rupee.

India wants CBDC to mirror its physical currency

According to the executive, the premier bank is considering enabling the CBDC to satisfy offline requirements. In his statement, Choudhary mentioned that the CBDC must tick the same boxes as physical cash, with only anonymity being the only feature that it holds over it.

The executive has also previously clarified that the CBDV will not eliminate cash from circulation, nor will it destabilize the current payment structure in the country. The executive explained that the public should see the digital rupee as the same as their physical currency, with the only difference being that the former is available in a digital space. In addition, the country would look into outlawing crypto to replace it with the upcoming CBDC.

RBI executive wants a total ban on crypto

India has been trying to work on its CBDC for a while now, with the country processing most of its resources to make it happen. A previous statement from another executive in the RBI stated that the government wants to eliminate the risks associated with digital assets while providing a medium of exchange to satisfy the basic things they do. The pilot of the project was floated last year, with the country focusing on creating a CBDC that will suit the wholesale and retail members of the country.

The country has since garnered a lot of success in the retail pilot, with more than 50,000 users already testing out the new payment system. India has been backing the CBDC project, with the Governor of its premier backing naming it one for the future. The Governor clarified that the difference between the current payment method and the CBDC is using the bank as a middleman for the former. In other news, the RBI is still advising the country to consider the likely ban on digital assets. The executive mentioned that digital assets could pose age-long risks to their payment system and, as such, should not be welcomed.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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