Last Updated on 08/12/2021 by Sanskriti

The RBI has shown concern of cyber fraud as the major challenge, before a successful rollout of digital currency. Governor of the Reserve Bank of India, Shaktikanta Das, stressed that before establishing a digital currency, the RBI must have a strong framework in place to protect against cyber theft.

The Reserve Bank of India is about to begin a trial programme for digital currency, which will be a digital version of banknotes.

Many of the tasks have been completed on the wholesale account-based digital currency, according to T Rabi Shankar, RBI deputy governor. However, some further time is necessary on the retail-based digital forex.

MoS Finance stated that ”The aim of making digital forex is to supply vital advantages, equivalent to decreased dependency on money, increased seigniorage as a result of decreased transaction prices and decreased settlement threat.”

The Centre also informed the Lok Sabha that the Reserve Bank of India (RBI) is determining a phased implementation strategy for the launch of Central Bank Digital Currency (CBDC) by examining use cases in order to avoid any interruptions.