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RBI governor touts CBDC to enhance cross-border payments and safeguard against crypto risks

Author: Content Editor
The Reserve Bank of India Governor, Shaktikanta Das, has highlighted the potential of Central Bank Digital Currency (CBDC) to facilitate efficient cross-border payments. Das expressed his support for CBDCs during a conference on Central Banking at Crossroads, stating that they could help reduce the time and cost of overseas remittances. He also mentioned that India's real-time gross settlement system is being considered for expansion to settle trades in global currencies, such as the US Dollar, Euro, and British Pound. The integration of CBDCs into this expansion is a possibility. India's CBDC pilot programs are currently testing programmability and interoperability with existing infrastructures. However, Das remains skeptical about cryptocurrencies, emphasizing the volatility they present. The RBI is advocating for a standardized and interoperable CBDC framework that would allow for the development of individual national systems within a global network. India launched its CBDC pilot for the digital rupee in December 2022, but adoption has been slow. The RBI continues to oppose cryptocurrencies due to potential risks to the country's economic stability.

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