RBI Panel to Explore the Feasibility of a Rupee-Backed Digital Currency

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Indian authorities have been more than a stern over cryptocurrency for a while now, and this new development comes as RBI’s first incline towards the possible use of digital currency in the nation. The report states:

The report further elaborated their decision

According to RTI response to India today, for the financial year 2018, the total cost of printing paper notes in India was Rs 636 crore. The report also cites the emergence of private digital tokens and the rapid evolvement of the payments industry as considerate factors for pondering upon a  central bank digital asset.

Stable coins are digital currency backed by an asset such as gold or fiat. Unlike cryptocurrencies like bitcoin or ethereum, their values aren’t volatile. The two popular stable coins, Tether and TrueUSD are pegged against the US dollar. Just recently, the Venezuelan government too introduced Petro, their own digital asset pegged against country’s oil and mineral reserves. Mahesh Makhija, Partner Advisory, Financial Services, EY India, said:

So, it seems that RBI doesn’t mind the idea of leveraging distributed ledgers in a payment system, clearing, and settlement processes, its wariness is regarding the privately issued cryptocurrency and its unregulated market. Makhija notes:

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