According to reports, the Reserve Bank of India has taken measures to curb the cryptocurrency trade against the rupee and set up a group to explore its own digital currency.
Sujatha Mohan, head of digital and new initiatives at RBL Bank, said: "This is a step in the right direction. When we talk about digital currency rather than virtual currency, it already exists in the form of a digital wallet. We have been working hard to reduce cash. Quantity, digital currency can help ensure this. From an implementation perspective, digital currency will need to be in a more natural way, and it must be part of everyday affairs. Only when it brings a more structured holding of funds The way it will be different."
RBI supports encryption technology as early as possiblePraveren Kumar, Chairman and CEO of Belfrics Global SDH, said: “For the central bank, the market is not mature enough to be tested in the national currency. Regulators and governments still know nothing about how to effectively regulate the existing cryptocurrency market. At this point, it is recommended that financial institutions be away from cryptocurrency service providers, and issuing the country's own cryptocurrency will not be very good."
Praveen Kumar believes that the Reserve Bank of India needs to adopt a wait-and-see attitude to understand how current market dynamics work with public blockchains. In addition, the issuance of national currencies involves many fundamental risks. What is needed now is to find an effective way to regulate the existing cryptocurrency market and prepare for a future national cryptocurrency and when the market will mature.
The central bank issuing digital currency will bring stability and security challengesSaigata Bhattacharya, chief economist at Axis Bank, said the central bank's digital currency (based on blockchains and other distributed ledgers) allows regulators to access bank information directly and immediately, and participate in ledger billing through regulatory agencies (system based on security licenses) Can replace the regulatory report.
Once the central bank issues the national digital currency, the central bank will face various challenges related to stability and security. Cybersecurity risks are becoming more and more obvious, just like the volatility of digital currencies.
In addition, this currency can combine the security of bank notes with the convenience of a bank account. Depositors who purchase money directly from the central bank will deprive banks of deposit reserves, forcing them to pay higher interest rates to depositors, thereby affecting the bank's profitability and lending capacity. In fact, the structure of the banking industry itself may change, and the cross-border transfer and demand for correspondent banks will also disappear.
Digital currency is likely to be the future of banking transactionsShantanu Sengupta, head of consumer banking at DBS Bank India, said: “What we need is a blockchain security that is implemented as a bookkeeping Units, a value store, and an ideal triple-target digital currency for a medium of exchange. Blockchain technology may eventually form the core of digital currency trading. Its advantages may be faster, more accurate transaction processing, and greater Efficiency and transparency, financial inclusion, and significant savings in printing and distribution."
Shantanu Sengupta believes that this is an exciting development and that the committee's recommendations may lead to further discussions and recommendations on effectiveness and implementation.
According to the ostrich blockchain, the Economic Daily reported on April 20 that from the perspective of technology and security, the central bank’s digital currency is still a long way to go from exploration to distribution to acceptance, and it is still difficult in the short term. Monetary policy and payment models have a big impact.
In addition, according to the ostrich blockchain reported on May 3, the Bank of Korea (BOK) plans to announce its recommendations on cryptocurrencies, including plans to issue central bank digital currency (CBDC). The bank said in a statement on Wednesday (May 2): "A special working group has been studying the possibility of issuing CBDC and how the digital currency will affect the country's overall financial sector. We will announce it by the end of June. The latest news on the issue."
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