The Central Bank of India Explores Offline Function of CBDC

03/05/2023 09:54 • Digital Disruptors • 126 views

It is reported that Ajay Kumar Choudhary, Executive Director of the Reserve Bank of India (RBI), provided some latest information about the Central Bank of India’s digital currency (CBDC) in an interview with CNBC. Choudhary said that the Central Bank of India was exploring the offline function of the digital rupee. Noting that CBDC will soon become a medium of exchange in India, he stressed that it needs to have all the characteristics of physical currency, including anonymity. RBI Executive Director previously said that the design of India’s CBDC would be the least disruptive and would not replace the physical currency or the current financial system.

RBI official: The digital currency of the Central Bank of India will replace the cryptocurrency

Analysis based on this information:

The Reserve Bank of India’s Executive Director, Ajay Kumar Choudhary, reported to CNBC about the Central Bank of India’s latest developments in their digital currency (CBDC) exploration. Choudhary revealed that the Central Bank of India is currently researching the offline function of their digital rupee. This news comes as India keeps pushing towards a cashless economy, and digital currency will play a big role in that transition. Choudhary stated that anonymity was a significant feature that the CBDC needed to have, and it is worth noting that India is one of the few countries that have banned cryptocurrency trading entirely.

Choudhary’s view is in line with the RBI’s previous statement that India’s CBDC’s design will be the least disruptive and will not replace the current financial system or physical currency. It is worth noting that India’s population stands at 1.36 billion, with only a fraction of the population having access to the internet. Therefore, exploring an offline function for the CBDC is a wise choice that considers the country’s vast and diverse population.

This interview with CNBC showcases how serious India is in introducing their CBDC to the market, and they seem to be taking advice from countries like China, which has already released its CBDC. The Central Bank of India’s exploration of the offline function of their CBDC will enable users to transact using digital currency regardless of their access to the internet, and this will be convenient for people in rural areas.

In conclusion, Ajay Kumar Choudhary’s interview showcases the Central Bank of India’s commitment to exploring the CBDC’s benefits and developing a digital currency that will uphold the attributes of physical currency, including anonymity. The exploration of an offline function will pave the way for the CBDC to be used by a wide range of people with varying access to the internet.

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The Central Bank of India Explores Offline Function of CBDC

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