RBI Governor Backs India’s CBDC To Counter Crypto Risks

As a seasoned researcher with a keen interest in financial technologies and their impact on emerging economies, I find the stance of RBI Governor Shaktikanta Das on Central Bank Digital Currency (CBDC) intriguing. His long-standing support for India’s Digital Rupee, coupled with his focus on modernizing cross-border payments, is commendable.


The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, has again emphasized his favorable viewpoint towards Central Bank Digital Currencies (CBDC). He underscored the possible benefits of India’s Digital Rupee and commended its development. Furthermore, he suggested that it could help mitigate potential risks associated with cryptocurrencies, reflecting a similar stand on digital assets that he has held previously.

RBI Governor Backs CBDC As A Shield Against Crypto Risks

The Governor of the Reserve Bank of India, Shaktikanta Das, has consistently advocated for the Indian Digital Rupee. As per a latest update, he reiterated the significance of Central Bank Digital Currencies (CBDCs) in navigating the unpredictable terrain allegedly formed by cryptocurrencies.

As an analyst, I’ve observed that Central Bank Digital Currencies (CBDC) could offer a more stable and regulated digital currency option for India. This could help mitigate the volatility and risks commonly associated with cryptocurrencies such as Bitcoin, Ethereum, and others.

The latest findings emphasized that Das has been prioritizing the advancement of cross-border payment systems. “Remittances play a significant role in developing countries such as India,” he asserted, advocating for decreases in fees and speeding up the processing of overseas transactions.

In the process, he explained that Central Bank Digital Currencies (CBDCs) might revolutionize the landscape, allowing for quicker and smoother cross-border person-to-person (P2P) transactions. Moreover, India is considering expanding its existing 24/7 real-time gross settlement (RTGS) system to facilitate trade settlements in significant global currencies like the US Dollar, Euro, and British Pound, he mentioned further.

As per Das’s statement, the possibility of this expansion is being examined using either bilateral or multilateral agreements. This initiative aims to streamline international transactions. The governor proposes that Central Bank Digital Currencies (CBDCs) could be incorporated into these endeavors, potentially enhancing their usefulness and reach.

Cross-Border Payment And AI Risks

The RBI Governor additionally discussed the ongoing trials aimed at assessing the effectiveness of India’s Central Bank Digital Currency (CBDC). These trials aim to evaluate the functionality and compatibility with India’s Unified Payments Interface (UPI) system. Das stated that “CBDCs offer a distinctive chance for India to take the lead in international transactions.

Nevertheless, he admitted the difficulties in creating a unified CBDC structure. Furthermore, he expressed worries about the potential misuse of artificial intelligence within the monetary system. He cautioned that AI, although potent, might lead banks to encounter increased threats such as cyber-assaults and data leaks.

Currently, the Governor of the Reserve Bank of India (RBI) has been actively advocating for Central Bank Digital Currencies (CBDC) for some time. Additionally, when it comes to other cryptocurrencies like Bitcoin and top altcoins, the RBI has adopted a firm stance. However, in July, there was collaboration between the RBI and Securities and Exchange Board of India (SEBI) to develop a nationwide policy on cryptocurrency.

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2024-10-14 10:58