CBDCs can replace cash transactions to some extent in India, says RBI Deputy Governor

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CBDCs can replace cash transactions to some extent in India, says RBI Deputy Governor

  • Over the last five years, while digital payments have risen at an average annual growth rate of about 50% roughly in India, the supply of currency has also almost nearly doubled, Shankar said. The currency in circulation before demonetisation in 2016 was roughly about Rs 17 trillion and presently it is at about Rs 30 trillion
  • The central bank deputy governor further said that 87 countries globally, accounting for 90% of world GDP, are in some way or the other, looking actively at CBDCs

“Now with the advent of stable coins, the issue of volatility went out, and then central banks sat up and said there is a clear threat from private currencies and even worse if multiple private currencies were to replace the official or fiat currency, I think that is what led to the flurry of activity across central banks,” Shankar noted.

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