Private Digital Currencies vs. CBDC: A Safer Alternative
Reserve Bank of India (RBI) Governor Shaktikanta Das recently emphasized the importance of Central Bank Digital Currency (CBDC) as a safer alternative to potentially dangerous private digital currencies. Let’s delve into the details.
Digital Currencies: The Context
Private digital currencies, commonly known as cryptocurrencies, are currently unregulated in India. The Indian government does not register crypto exchanges, and these assets operate in a borderless manner, requiring international collaboration.
CBDC: A Safer Alternative
Governor Das highlighted that CBDC can drive financial inclusion and provide a much safer alternative to private digital currencies. Here are the key points:
Settlement Finality: CBDC offers the feature of settlement finality, which can substantially re...