Deputy Governor Of India’s RBI Says Central Bank Digital Currencies Can Kill Private Cryptocurrency
The Reserve Bank of India (RBI)’s deputy governor, T Rabi Sankar – while conversing with the International Monetary Fund (IMF), voiced an anti-crypto viewpoint as he talked about the potential of India to bring evolution to the blockchain ecosystem as well as cryptocurrency.
The RBI governor initiated the discussion by pointing toward the accomplishment of the Unified Payments Interface (UPI) – known as the in-house fiat currency-based payments system that works on a peer-to-peer mechanism – which has witnessed a regular transaction as well as adoption growth of up to 160% yearly during the previous 5 years.
While drawing a comparison between the growth of UPI as well as the blockchain technology, he added that one of the reasons behind its remarkable success is that it is convenient. As per him, blockchain – which was launched approximately 6 to 8 years before the beginning of UPI –even at the moment is being considered a technology that can bring about a revolution. He moved on to say that the use cases of blockchain, on the other hand, have not been established to a sufficient extent at the pace that was expected from it in recent times.
Nonetheless, the RBI executive verified that a great amount of the citizens living in the country even now do not have access to the banking which is based on UPI because of the inaccessibility to smartphones. According to him, to deal with this problem, the authorities in India are operating on the payment venues that work offline and a few of which have begun being introduced to a vast span of population.
Apart from this, Rabi Sankar mentioned that a vital role will still be played by the banks in the provision of liquidity facilities to the common masses living within the country, cautioning that the technology is just an instrument and thus cannot be utilized for the creation of currencies. He revealed that for a currency there is a requirement for an issuer or some intrinsic value.
Some cryptocurrency types are those which are even now being adopted just at their face value and academicians, policymakers, as well as experts are also embracing them just like the gullible investors, he elaborated. As he put it, just the central bank digital currencies (CBDCs) have the actual potential of eliminating private cryptocurrencies.
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