While the Reserve Bank of India has flagged concerns over the use of cryptocurrencies, Shaktikanta Das on Thursday said the central bank is working on introducing a digital version of the fiat currency.
“We need to be watchful of the risks associated with certain technological innovations. While we are working on introducing a digital version of the fiat currency, the RBI is also assessing the financial stability implications of introducing such a Central Bank Digital Currency,” Das said, adding that as the underlying technology is still developing, the RBI is exploring ways for a safe and legally certain settlement finality, which is most crucial for a secure and efficient payment system.
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“It also needs to be appreciated that there are not many practical instances of operationalisation of CBDC across the world; this calls for utmost precaution so that we can produce a safe and robust model,” Das said.
Das said he has “reasons to believe” that the government is in agreement with the “major concerns” flagged by the RBI about cryptocurrencies.