According to a story from the Hindustan Times, the Reserve Bank of India (RBI) recommended a phased introduction of the central bank digital currency on May 27, 2022. (CBDC).
RBI said in a paper it issued earlier in the day that it was weighing the merits and drawbacks of implementing CBDC in India. Before the formal launch, it should go gradually via phases of proof of concept and pilots.
The plan also sought to guarantee that the CBDC complies with current monetary policy and financial stability goals.
According to the RBI report, the Reserve Bank is implementing a central bank digital currency (CBDC) in India. CBDC’s design must align with the stated goals of monetary policy, financial stability, and efficient currency and payment system operations.
RBI said that it intends to use a phased approach to the deployment of CBDC, proceeding progressively through Proof of Concept, pilot, and launch phases.
CBDC is the widely-discussed alternative to cryptocurrencies. It will have all the qualities of the present fiat money and will be legal tender like paper cash.
Finance Minister of India Nirmala Sitharaman said in her budget statement on 17 April 2022 that digital money would result in a more efficient and less expensive currency management system.
Former finance secretary Subhash Chandra Garg said that Cryptos raise issues on two fronts: monetary stability and financial stability. The RBI is primarily concerned with monetary stability.