Vasudevan said The CBDC may have a useful role to play, depending on how it is implemented. There should be no rush to launch it. We are at work and looking at various issues and nuances related to CBDC. Vasudevan said the RBI was examining various issues such as which part of the CBDC should be targeted, wholesale or retail. Matters relating to its authenticity and method of distribution channels are also being looked into. The RBI’s CGM said the central bank was also examining whether intermediaries could be completely bypassed and, most importantly, whether the technology should be decentralized or semi-centralized.
The RBI has repeatedly expressed concern over cryptocurrencies, which pose risks such as macroeconomic and financial stability. Prime Minister Narendra Modi has also spoken on this in the Sydney Dialogue. Prime Minister Narendra Modi has called on world democracies to work together to ensure that cryptocurrencies like Bitcoin do not fall into the wrong hands. Citing the example of cryptocurrency like Bitcoin, the PM said that all democracies should work together on it and ensure that it does not fall into the wrong hands, otherwise it could harm our youth.