Indian Central Bank Proposes Graded Approach for CBDC -Breaking
- Reserve Bank will adopt a graduated approach for the introduction CBDC
- CBDC conforms to existing objectives such as monetary policy and financial stability.
- “Digital currency will lead to a more efficient and cheaper currency management system,” says the finance minister.
A report by the Hindustan Times claims that the Reserve Bank of India proposed, on May 27, 2022 to use a graduated approach to launch the central bank’s digital currency (CBDC).
The RBI released an annual report earlier in the day, stating that they were examining all the options for CBDC. The RBI should take small steps and test the waters before officially launching CBDC in India.
It was also proposed to align the CBDC with current objectives for monetary policy, financial stability, and other monetary policies.