MUMBAI, May 28 (NNN-PTI) – India’s central bank, yesterday said, it will be opting for a “graded approach” towards introducing its digital currency.
In its annual report released yesterday, the Reserve Bank of India said, the design of the central digital coin needed to be in line with the objectives of its monetary policy, financial stability and efficient operations of currency and payment systems.
“The Reserve Bank proposes to adopt a graded approach to introduction of Central Bank Digital Currency (CBDC), going step by step through stages of Proof of Concept, pilots and the launch,” the annual report said.
A proof of concept is a process of determining whether an idea can be turned into reality or verifying if the idea will function as envisioned.
The Reserve Bank has been exploring the pros and cons of the introduction of CBDC in India and accordingly, the appropriate design elements of CBDCs that could be implemented with little or no disruption are under examination, it said.
In Feb, India’s Finance Minister, Nirmala Sitharaman, while presenting the annual budget for the year 2022-23, said, the Reserve Bank of India will launch an Indian digital currency.– NNN-PTI
