Get your wallets ready for Digital Rupee; RBI says digital currency to have phased introduction

As the legality of cryptocurrency in India remains murky the Reserve Bank of India is working toward a “phased implementation strategy” of a Central Bank Digital Currency (CBDC). Which essentially means the RBI is looking for a pilot project to roll out a Digital Rupee.

Deputy Governor T. Rabi Sankar said introduction of a digital rupee will protect people from the volatility of private virtual currencies.

“Central banks have increased their attention on digital currencies,” in recent years, Sankar said, adding that the introduction of such currencies -- which will be backed by the sovereign -- will help in bringing down the usage of cash in the economy, while minimizing the damage to the public from the usage of private currencies.

The RBI has expressed concern about cryptocurrencies on a number of occasions, citing issues such as money laundering and terrorism financing. China has led the way in introducing a digital currency as it rolls out the Digital Yuan amongst citizens in the mainland.

Read/Watch Also: Bitcoin's volatile ride