Article ;
Extract :
The experts
suggesting to the government that Central Bank Digital Currencies (CBDCs) like India's digital rupee have an advantage over cryptocurrencies
such as Bitcoin and Ether due to their backing by regulators.
India's regulatory
bodies are leaning towards banning private
cryptocurrencies like Bitcoin and favoring CBDCs. The digital rupee (e)
was introduced in November
2022 as a pilot project and subsequently tested in the retail and
wholesale segments.
In a move to
establish more control over the financial ecosystem, the Indian government is
exploring the potential of CBDCs as a secure and
regulated alternative to volatile private cryptocurrencies like Bitcoin and
Ether.
With the digital
rupee gaining traction through pilot programs, the emphasis is shifting towards
creating a reliable payment system that aligns with
regulatory standards, aiming to address concerns related to unregulated
cryptocurrency trading and the risks associated with it.
My Take:
e-Rupee
or IndiaBit: a Rose by Any Other Name? ..
16 Oct 2023
The concept note
released by the Reserve Bank of India in 2022 regarding the Central Bank
Digital Currency (CBDC) aligns perfectly with the current scenario discussed in
the article.
In the blog, I highlighted the features of the digital
rupee as a sovereign currency issued by the central
bank, emphasizing its acceptance as legal tender and store of value.
The relevance of
this information is evident in the ongoing discourse around CBDCs superseding
private cryptocurrencies due to their regulatory backing and stability.
e-Rupee
or IndiaBit
……… 08 Oct 2022
In this blog post, I delved into the various types of CBDCs, including Retail
(CBDC-R) and Wholesale (CBDC-W), which resonates with the current government's
approach towards introducing the digital rupee in both retail and wholesale
segments.
The focus on
providing additional payment avenues without replacing existing systems, as
discussed in the blog, aligns with India's aim to complement traditional
currencies with CBDCs.
The concerns
expressed by RBI regarding the proliferation of cryptocurrencies also mirror
the sentiments expressed in the recent article, emphasizing the need for
regulated financial instruments.
Call to Action:
To the Indian
regulatory bodies and policymakers mentioned in the article :
I urge a thoughtful
and inclusive approach towards implementing CBDCs.
It is
crucial to consider the potential benefits of CBDCs in providing secure and
regulated financial transactions while addressing concerns
related to unregulated cryptocurrencies. Collaborating with experts and
stakeholders in the financial sector can lead to a robust framework that
balances innovation and regulatory oversight for a sustainable financial
future.
With regards,
www.My-Teacher.in /
22 Oct 2024
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