New Delhi: With the Reserve Bank of India (RBI) set to launch the Central Bank Digital Currency (CBDC) as the Cryptocurrency and Official Digital Currency Bill, 2021, in the ongoing winter session of Parliament, Governor Shaktikanta Das has addressed the key challenges. Described including cyber security and digital fraud in the new system.
According to news agency PTI, Deputy Governor T Rabi Shankar said that in two types of CBDCs-wholesale and retail, the former has taken a lot of work, while the latter has a “complicated” aspect, which will take time.
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Earlier this year, the RBI revealed that it had started working on a CBDC, in line with other major central banks in the world, which are looking at a fiat digital currency.
According to a report, the RBI wants to start a pilot exercise on this front by early next year.
“The main concern comes from cyber security and the potential for digital fraud. We have to be very careful about that,” Das said after the MPC’s decision was announced.
Recalling concerns shared a few years ago, Das reiterated that counterfeit currency and similar aspects could play into play with the launch of CBDCs, which must be prevented by putting in place the necessary firewalls and a robust security architecture.
Shankar explained that the CBDC would be an electronic version of the current paper-based currency and highlighted the risks of digital fraud and cyber threats as “key challenges”.
“There has been a lot of work that has happened in wholesale account-based, whereas retail is complex and will take time. When and whichever is ready first, we will release it for a pilot,” he said.
Earlier, Das had hinted at a soft launch for the CBDC by the end of December 2021.
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