Context :
RBI's digital currency: Phased
implementation in process for wholesale, retail segments
( DNA /
20 July 2022 )
Extract :
The Reserve
Bank of India is in the process of implementing
the Central Bank Digital Currency (CBDC)
in a phased manner for the wholesale and retail
segments, an official said on Wednesday
The passage of the bill has
enabled the RBI to conduct a pilot and subsequent issuance of CBDC, he said. "RBI is also
working on phased implementation of a central bank digital
currency (CBDC) in both wholesale and retail segment,"
Choudhary said while delivering a keynote address at the 'PICUP Fintech
Conference & Awards' by FICCI.
CBDC is a digital
or virtual currency but it is not comparable to the private virtual currencies or
cryptocurrency that have mushroomed over the last decade. Private virtual currencies
do not represent any person's debt or liabilities as there is no issuer.
India's
official digital currency is likely to debut by early 2023, which will mirror any of the currently available
private company-operated electronic wallets. The CBDC will be a sovereign-backed digital
currency.
Citing
data, he said so far this year, India's UPI
transaction has seen participation of 323 banks and has recorded 5.9 billion monthly transactions worth
over USD 130 billion.
The
revolution which the QR code brought along and the interoperability
features ensured that the banking on the fingertip phase came through,
the official said. "I have also observed that most of the younger
generation now avoid carrying a physical wallet as everything they need is in their
mobile phones. The contribution of fintech in digital payment can also be
observed by usage of prepaid payment instruments.
MY TAKE :
Crypto : Corruption : Corona : China ………………………..[ 17 June 2020 ]
- Where , I wrote :
Dear Smt Nirmala Sitharamanji / Shri RaviShankar Prasadji
/ Shri Piyush Goyalji,
I have no clue as to what mechanism could be used ( Inter-Currency Exchange
Rate ) for payment for Imports and remittances for Exports , if – and when –
we introduce IndiaBit
But if IndiaBit can ,
# To begin with bring out all BLACK MONEY ( stashed away as paper
currency notes ) and deploy the
productive purposes ,
and
# Put a Full Stop
to any future generation of Black Money ,
- then my proposal deserves a
debate
What will convince RBI / Government to issue OFFICIAL VIRTUAL CURRENCY ?
Here is a brief ( non-comprehensive ) suggestion for
proposed Law :
Ø While
banning Private Crypto, introduce IndiaBit ( Govt Virtual Currency )
Ø With
some effective date, withdraw all Paper Currency ( forget coins )
Ø Minimum denomination will still be called a RUPEE ( easy to convert from
paper to digital )
Ø As of a given date, bank balances in everyone’s bank account gets
converted to IndiaBits
Ø Set time limit within which people can deposit their paper currency into
banks for
instant conversion
Ø After set date, paper currencies held by anyone ( individual or any legal
entity such as a Company ),
purchase transaction
Ø All future financial transactions ( sell / buy of any goods or services ) can
only be
through mobile-app
Ø Since all transactions will become DIGITAL, Govt would have full / life-
time LOG of each citizen’s
“ Sale or Purchase “
[ Who bought What , When , from Whom , at What price , Where etc ] .
===================================================
Dear
Smt Sitharamanji,
A
word of caution :
Implementation of my suggestion ( described above ), is bound to meet with
strong resistance / opposition from persons holding BLACK MONEY ( stashed
paper currency in Rs 2,000 notes
)
Expect opposition to quote the “ failure “ of De-Monetization to get rid of Black
Money
They will strongly oppose total replacement of paper currency, citing enormous
inconvenience / hardship this will cause the poor people .
I agree with them
Please enable a JPC ( headed by Opposition Member ? ) to draft the Crypto Bill,
with full unanimity
I agree that the objective should be limited to :
“ Reduced dependency on cash “
And not :
“ Replacement of Cash “
May be, 5 years after introduction of IndiaBit, this ( larger ) objective would find
acceptance
With Regards,
Hemen Parekh
/ hcp@RecuitGuru.com / 26
July 2022
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