RBI signals phased rollout of CBDC

The Reserve Bank of India (RBI) is working on a phased rollout strategy for the national digital currency (CBDC) and the process for launching it in wholesale and retail segments, Deputy Governor T. Rabi Sankar said, per Bloomberg.

He said the regulator is weighing steps for the rollout of the digital rupee to allow time for legislative changes. Sankar added that the CBDC would reduce cash usage and shield citizens from the volatility of cryptocurrencies.

“The idea of a central bank digital currency has matured, and many regulators around the world are working on its implementation,” a RBI spokesperson said.

Earlier in 2021, the Reserve Bank began studying the potential of the digital rupee.

In 2018, India banned banks and financial institutions from providing services to companies dealing with cryptocurrencies. In March 2020, the Supreme Court overturned the ban.

In May 2021, ForkLog reported that the central bank asked banks to sever ties with bitcoin exchanges. After that, the regulator urged controlled entities not to refer to the repealed directive banning cryptocurrency operations.

In July, reports emerged that the Indian government was studying the possibility of introducing an additional 18% tax on foreign cryptocurrency exchanges.

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