The Indian authorities are endeavoring to implement stringent regulations on the use of crypto assets. Nonetheless, on the other hand, the officials of the country are also paying a lot of attention to the development of a central bank digital currency (or CBDC).
While following a hard approach toward crypto assets, the authorities argue that these assets do not have any fundamental value.
India Explores Offline Functionality-Related Possibilities in the CBDC Sector
However, in the case of CBDCs, the Indian government has been making great efforts. Recent reports have pointed out that the country is making significant progress in this sphere.
As per the reports, the Reserve Bank of India is leading this development within the country’s jurisdiction. It is pursuing its objectives of launching a CBDC that would be pegged into its native currency rupee.
While attempting to achieve its goals, the latest move made by the country is the testing of its CBDC in the case of offline functionality. This news was disclosed by Ajay Kumar, the person serving as the RBI’s executive director.
The Reserve Bank of India (RBI) plays the role of the country’s central banking institution. It also operates as India’s chief regulatory organization.
The RBI commenced the wholesale pilot project for its digital rupee in the previous year. The initiative began on the 1st of November last year. It onboarded up to 50,000 consumers as well as 5,000 merchants to test the functionality of the project in a real-world setting.
As of the 25th of February this year, the project has remained successful in accomplishing nearly 800,000 transfers through the wholesale CBDCs.
While commenting on this project, the RBI executive disclosed that the regulatory body is emphasizing a lot on the matter of offline functionality of its upcoming CBDC. While speaking on this, the executive asserted that the RBI is exploring the potential of the CBDC to carry out transfers across borders.
In addition to this, he added, the organization is also attempting to establish a linkage with legacy mechanisms that are operating within the other jurisdictions.
In his words, the regulatory entity of India is expecting the participation of fintech platforms and private sector-based bodies in the latest CBDC pilot project. The executive moved on to say that the RBI looks forward to their participation, particularly in the areas of cross-border and offline transactions with the CBDCs.
RBI Official Says CBDCs Will Soon Take the Place of Crypto Apart from that, the executive expressed confidence in the wide-scale usage of CBDCs in the future.
According to Choudhary, the CBDCs would soon play the role of the broadly prevailed means of financial exchange in comparison with the physical currency. Choudhary claimed that the respective CBDCs would even take the place of the crypto assets.
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