The digital currency issued by the RBI will be completely similar to cash and does not need indirect settlements and multiple jumps.
The forthcoming digital currency of the Indian Reserve Bank, which will use a private blockchain platform, will reduce transaction settlement processes.
The digital currency will be like cash and will give the central bank tighter control over it.
“The digital currency issued by the RBI will be completely similar to cash and does not need indirect settlements and multiple jumps,” a Mint source reported.
Last month, RBI Governor Shaktikanta Das said the RBI has reserves regarding cryptocurrencies and is working on its own digital currency. The digital currency, Das said, will be different from cryptocurrencies, adding that the central bank does not want to lag behind in the technology revolution, and the benefits of blockchain technology need to be capitalized on.
RBI’s private blockchain platform will be like the Unified Payments Interface (UPI) on which government and private companies can build their own applications. Although initial discussions have taken place on the issue, a final decision on starting work on it has not yet been made.
The central bank wants to have complete control over the digital currency, the publication quoted another source as saying. “RBI did not want a distributed book like bitcoin, which uses a public blockchain. RBI is basically interested in the possibilities and application in fraud prevention, counterfeiting and some specific benefits of blockchain,” the source said.