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India's central bank, the Reserve Bank of India (RBI), has released a 50-page concept note for the central bank's digital currency (CBDC) implementation in the nation. The report was produced by the RBI's Fintech division, established in January 2022 to develop cryptocurrency rules and a CBDC. The RBI emphasized the significance of finding new approaches and appealing use cases that would make CBDC as valuable as cash in the proposal. It claimed to be working towards a gradual implementation plan, proceeding in stages through many phases of pilots before the ultimate launch.
Objective Of RBI
Reasons motivating the Indian central bank to establish a CBDC include: To manage physical currencies at a lower cost, to promote financial inclusion, to bring stability, efficiency, and technology to the payment platform, to facilitate cross-border transaction innovation, to give the general public access to virtual currencies without the associated risks, and to provide availability and adaptability when there is no electricity or mobile network.
Zero-Risk CBDC
According to the RBI, the CBDC is a zero-risk central bank digital currency, giving customers the same experience of trading in cash digitally without the risks associated with private cryptocurrencies. However, the Indian central bank reiterated that cryptocurrencies are a risk to financial stability.
Reserve Bank Of Australia's CBDC Trial
According to a recent white paper, the Reserve Bank of Australia (RBA) expects to complete the final central bank digital currency pilot by the middle of 2023. The trial's objective is to explore inventive use cases that could be made possible by issuing a CBDC. The research also looked at the regulatory challenges relating to a CBDC, according to the white paper produced by the Australian government that would be used to propose new laws.