There Is Global Consensus For Use Of E-Currency: RBI Report RBI is among the pioneers, having launched a CBDC, the e-Rupee, for both wholesale and retail use
By Teena Jose
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The Reserve Bank of India (RBI) has reportedly said that there is a global consensus that the central bank digital currency (CBDC) will be useful for more efficient cross-border payments and distribution of funds during a crisis like the pandemic, according to a TOI report.
"The Covid pandemic created conditions to support exponential growth in digital payments and the proliferation of private cryptocurrencies as an alternative to financial assets fetching low returns. This experience prompted central banks to accelerate work CBDCs," stated the RBI in its recently released report on trends and progress of banking in India.
As per the report, the RBI while quoting the Bank for International Settlements has said that 90% of central banks were actively researching the potential, 62% were experimenting with the technology and 26% were deploying pilot projects. It further added that RBI is among the pioneers, having launched a CBDC, the e-Rupee, for both wholesale and retail use.
"CBDCs, if implemented correctly, can promote diversity in payment options, make cross-border payments faster and cheaper, increase financial inclusion and possibly facilitate crisis-time, such as pandemic, fiscal transfers to targeted beneficiaries," the RBI said as per the report.
