The RBI in a concept note announced its decision to create awareness in the country about the Central Bank Digital Currency (CBDC), also known as the digital rupee.
The note explains the RBI approach for rolling out the virtual currency. With more than 80% of the world’s federal banks considering the introduction of private cryptocurrencies, the RBI note could be seen as a first move towards understanding the larger implications of virtual currency.
Keeping in mind key considerations such as technology, privacy and design requirements for the rollout, and implications on monetary policy and fiscal stability, the RBI is planning a pilot launch of the digital rupee for specific use cases.
With the note, the central bank seeks to highlight the objectives, benefits, choices and risks of bringing a CBDC into circulation in the country.