CBDC A THREAT TO CRYPTO: RBI TO IMF
In an interview with the International Monetary Fund (IMF), T Rabi Sankar, deputy governor of the Reserve Bank of India (RBI), pointed out the anti-crypto situation as he spoke of India's potential for disrupting crypto and blockchain ecosystems.
Rabi Sankar began the conversation by highlighting the success of Unified Payments Interface (UPI), India's peer-to-peer payment system - which saw a modest increase in acquisitions and a growth rate of 160% over the past year. five years.
"One of the reasons we are so successful is because it is so simple," he added while comparing UPI growth with blockchain technology. According to Rabbi Sankar:
“Blockchain, introduced six and eight years before the rise of the UPI, even today is called the revolutionary technology. Cases of use of [Blockchain] have not been fully substantiated at the expected pace. ”
However, an RBI official confirmed that most people in India still lack access to UPI-based banks due to the unavailability of smartphones. To address this, the Indian government is operating offline payment platforms, some of which have already begun to spread to more people.
Rabi Sankar also pointed out that banks will remain important in providing financial services to the general public in India, warning that technology is simply a tool and cannot be used to create a single currency:
“The type of currency requires the issuer or requires the internal value. Many non-exclusive cryptocurrencies are still widely accepted. Not only fraudulent investors but also professionals, policy makers or academics. ”
He further added that the RBI does not believe that stablecoins, such as Tether (USDT), should be blindly accepted as 1 to 1 denomination currencies. Commenting on the benefits of the digital rupee, Rabi Sankar said:
"We believe that digital banking (CBDCs) can actually kill any small case that could be a secret currency."
Related: India will release CBDC using standard method: Annual RBI Report
On May 28, India's central bank, the RBI, proposed a three-step approach to excluding CBDC from "minor or non-disruptive" disruptions to the traditional financial system.
As Cointelegraph reported, Finance Minister Nirmala Sitharaman first unveiled a plan to launch the CBDC in 2022-2023 with the aim of providing "significant improvements" to the digital economy. The RBI report revealed that the central bank is currently trying to develop a CBDC that addresses many issues within the traditional system.