The era of dominant cash is drawing to an end and India is poised to be an integral part of the emerging global digital payments architecture. EPISODE #50
The proposed launch of the CBDC or Digital Rupee is a plausible move by the Government. In the current fast paced world of international business and finance , India has to be among the frontrunners and not play catch up forever. The main concerns of the countries are, that due to their ease and speed of transactions, the cryptocurrencies do not replace or dominate the sovereign currency. For the same reason the cryptocurrency can be conveniently used for illegal and critical payments like drugs, other smuggling activities, arms and terrorism. The Digital Rupee therefore has made an insightful and timely entry.
Thank you Gautam. We will know the details in a week or so when the FM presents the bill to Parliament. I believe India has learnt its lessons. Especially with the covid-19 vaccine. Imagine if it had not been produced indigenously India would have been at the mercy of these MNCs; especially when the developed world so brazenly cornered all the stocks. Similarly the idea of a digital rupee is not something every central bank in the world can implement. Trust quotient is the key. And in this RBI has built a stellar reputation over the years. Thank you for reading and sharing your thoughts. Best. Anil
A very timely article as all news channels are talking about the dangers and benefits of cryptocurrency these days !! There are still many grey areas and the common man does not understand it.Though it has a lot of potential for the future , when payments will be all digital, but at present we need to frame proper guidelines and framework for its usage.
Dear Vandana, thank you for your kind words. Agree with you that we have done a poor job unpacking this subject for the lay person. And that it has a bright future. So imperative to get the policy guardrails in place before that. Best. Anil
The proposed launch of the CBDC or Digital Rupee is a plausible move by the Government. In the current fast paced world of international business and finance , India has to be among the frontrunners and not play catch up forever. The main concerns of the countries are, that due to their ease and speed of transactions, the cryptocurrencies do not replace or dominate the sovereign currency. For the same reason the cryptocurrency can be conveniently used for illegal and critical payments like drugs, other smuggling activities, arms and terrorism. The Digital Rupee therefore has made an insightful and timely entry.
Thank you Gautam. We will know the details in a week or so when the FM presents the bill to Parliament. I believe India has learnt its lessons. Especially with the covid-19 vaccine. Imagine if it had not been produced indigenously India would have been at the mercy of these MNCs; especially when the developed world so brazenly cornered all the stocks. Similarly the idea of a digital rupee is not something every central bank in the world can implement. Trust quotient is the key. And in this RBI has built a stellar reputation over the years. Thank you for reading and sharing your thoughts. Best. Anil
Dear Anil,
A very timely article as all news channels are talking about the dangers and benefits of cryptocurrency these days !! There are still many grey areas and the common man does not understand it.Though it has a lot of potential for the future , when payments will be all digital, but at present we need to frame proper guidelines and framework for its usage.
Dear Vandana, thank you for your kind words. Agree with you that we have done a poor job unpacking this subject for the lay person. And that it has a bright future. So imperative to get the policy guardrails in place before that. Best. Anil