In a report released yesterday, the RBI has identified the benefits of a central bank digital currency and its possible future in India.

The report states that "in its basic form, a central bank digital currency (CBDC) provides a safe, secure, and convenient alternative to physical cash. Depending on the design, a CBDC can also be a complex form of financial instrument."

RBI backs CBDCs for efficient cross-border payments, they are seen as a future substitute for correspondent banks。

Furthermore, according to the International Bank of India’s December 28 Trends and Progress report, “Given the dynamic impact of CBDC on macroeconomic policymaking, it is necessary to conduct a thorough test using basic models to minimize its impact on monetary policy and the banking system. lowest."

It's not just e-rupees, though. The regulator also raised some key issues that must be resolved before the e-Rupee debuts.

The report states, "Measuring the size of issuance/distribution will also help determine the appropriate underlying technology best suited to handle this type of business”

Beyond that, some decisions have to be made around the two options, retail and wholesale. On this basis, the RBI also discussed the distribution structure of CBDC in India. For example, is the RBI the only institution that can issue digital currencies directly, or can commercial banks also be involved?

Having said that, previous reports said the RBI plans to explore wholesale and retail CBDCs, citing RBI Deputy Governor T. Rabi Sankar.

T. Rabi Sankar said, “We have done a lot of work on CBDC-based wholesale, while retail is a bit more complicated and needs more time. We will test it to be ready.”

Meanwhile, the recently concluded winter session of the Indian Parliament exposed the RBI's e-rupee plans.The central bank has submitted a CBDC proposal to Parliament. Additionally, it has reportedly been working on a “phased implementation strategy” to roll out a central bank digital currency to users in India。

The report pointed out that this was done to expand the scope of the application of the rupee without greatly affecting the financial market.

However, behind the emergence of this news is the Indian central bank's tough stance on private cryptocurrencies such as Bitcoin. India seems to be looking for a stricter regulatory framework, and its CBDC implementation will be worth keeping an eye on.

The original text comes from ambcrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.