Digital currency to be less costly: RBI Governor Shaktikanta Das on CBDCs at HTLS 2022 | Mint
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Business News/ News / India/  Digital currency to be less costly: RBI Governor Shaktikanta Das on CBDCs at HTLS 2022
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Digital currency to be less costly: RBI Governor Shaktikanta Das on CBDCs at HTLS 2022

India's first Digital Rupee pilot project commenced last month

RBI Governor speaks at HTLS 2022Premium
RBI Governor speaks at HTLS 2022

Digital currency will be less costly, said the Reserve Bank of India (RBI) Governor Shaktikanta Das while speaking at the Hindustan Times Leadership Summit in New Delhi on Saturday.

“World is changing, the way business is done is changing...you have to keep pace with times. More specifically, printing of paper notes, it involves cost -- cost of printing, buying paper, logistics, storage. Going forward, digital currency will be less costly. It will be very important for cross-border transactions and for cross-border payments," Das said.

India's first Digital Rupee pilot project commenced last month with nine banks, including SBI, HDFC Bank and ICICI Bank, issuing the virtual currency for transactions in government securities.

In a recent concept note on Central Bank Digital Currency, the RBI said CBDC is aimed to complement, rather than replace, current forms of money and is envisaged to provide an additional payment avenue to users, not to replace the existing payment systems.

CBDC is a digital form of currency notes issued by a central bank. While most central banks across the globe are exploring the issuance of CBDC, the key motivations for its issuance are specific to each country's unique requirements. The Government of India had announced the launch of the Digital Rupee from fiscal year 2022-23 onwards in the Union Budget tabled in Parliament on February 1, 2022.

Across the globe, more than 60 central banks have expressed interest in CBDCs with a few implementations already under pilot across both retail and wholesale categories and many others are researching, testing, and/or launching their own CBDC framework.

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Published: 12 Nov 2022, 03:40 PM IST
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