CBDC Internationalisation of CBDC can address transborder payment issues, says RBI Deputy Governor
RBI deputy governor T Rabi Sankar Wednesday said in New Delhi that internationalisation of CBDC was crucial to addressing the problems faced by international bodies in cross border payments, media reports said.
While domestic payments have made a lot of progress across the world, international payments are still stuck in the last century in terms of costs and the time associated with these transactions.
"CBDCs, in my view, is the most efficient answer to this... For example, if India and the US have CBDCs, we don't have to wait for the banks to be open to settle transactions. The central banks on either side need not be open to get the finality of settlement. That massively takes out the settlement of risk from cross-border transactions. So, the internationalisation of CBDCs is something I am looking forward to," Rabi Sankar was quoted as saying by Moneycontrol.
The RBI plans to launch its digital currency some time this year.
The Central bank has also asked four banks -- SBI, Punjab National Bank, Union Bank of India, and Bank of Baroda -- to run a pilot project before the final rollout.
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