RBI Executive Director Backs Digital Rupee as India Pushes For CBDC

• Choudhary argues that the pressing strategic requirement may be met with digital money.
• CBDC would give people what they wanted while protecting consumers as per the exec.

At a session titled “Digital Rupee: A Way Forward.” Executive director of the Reserve Bank of India Ajay Kumar Choudhary said that adopting digital currency will greatly improve system operating efficiency and advance financial inclusion.

Furthermore, Choudhary argues that transitioning to a digital rupee will provide new levels of stability. And innovation to the payment system. He also thinks it will encourage creative solutions to problems in international monetary transactions. 

If the markets have their way, in the not-too-distant future, there will be a lot more very big cases made. He went on to say that CBDC would give people what they wanted while protecting consumers. And preventing economic and societal fallout.

Alternative Payment Method

Choudhary argues that the pressing strategic requirement may be met with digital money right now. He predicts that digital money would function more as an addition to current payment systems than as a replacement. To put it another way, it would provide customers with another payment method.

Moreover, he said the Reserve Bank of India (RBI) would take measures to ensure that the issuance of CBDC is conducted in a methodical and proper manner with adequate safeguards to tackle any potential difficulties and risks in order to create a system that is inclusive, competitive, and able to respond to innovation and technological changes.

Nearly 105 countries, accounting for 95% of global GDP, have taken steps to integrate digital currency into their economic systems, according to the central bank digital currency (CBDC) tracker, Choudhary said.