Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Indian National Payments Corporation Executive Expresses Confidence in RBI’s Central Bank Digital Currency Initiatives
Dilip Asbe, the managing director of the National Payments Corporation of India (NPCI), is hopeful regarding the central bank’s new initiatives for central bank digital currencies (CBDCs).
During a panel discussion at Mumbai Tech Week on Sunday, he voiced his endorsement for the digital rupee initiative. He stated that the Reserve Bank of India’s (RBI) new plans for CBDCs could catalyze the next wave of fintech innovation.
“In the recent monetary policy meeting, the RBI governor announced the introduction of programmable money, offline capabilities, and several new initiatives related to CBDC,” he remarked, as reported by ET.
“These initiatives concerning CBDCs are poised to drive the next wave, in my view.”
The central bank revealed on February 8 that it would enable programmability for its digital currency. This development would allow for transactions even when users are offline.
Moreover, Asbe highlighted that the implementation of tokenization and delivery versus payment scenarios could also promote the adoption of CBDCs in the nation.
Reserve Bank of India’s CBDC Strategy
Related Posts
In its 2024 monetary policy statement, the RBI suggested additional features such as programmability and offline functionality for retail CBDC payments.
“Programmability will allow transactions for specific or targeted purposes, while offline capabilities will facilitate these transactions in regions with poor or limited internet access,” the bank stated.
RBI governor Shaktikanta Das mentioned that businesses would also gain from the ability to program specific expenditures.
The central bank’s e-rupee aims to establish a framework for the authentication of digital payment transactions. The RBI has already trialed additional factor authentication, including the receipt of OTPs via SMS.
In September, the RBI partnered with several leading financial institutions to introduce innovative features for the digital rupee. This initiative was designed to enhance the popularity of CBDCs and increase retail CBDC transactions in India. Some of the features include offline CBDC transactions and integration with India’s widely utilized Unified Payments Interface (UPI).
As previously reported, the State Bank of India, the country’s largest public sector bank, has already integrated the digital rupee with UPI.
Simultaneously, the RBI has launched a wholesale CBDC pilot program for inter-bank borrowing, involving nine major lending institutions.
The bank is currently investigating technological solutions to address privacy concerns, adopting a cautious stance towards CBDCs. According to a source familiar with the situation, privacy legislation is in progress to ensure that CBDCs are a secure product for the country.
The post Indian National Payments Corporation Exec Optimistic on RBI’s CBDC Efforts appeared first on Cryptonews.
