17 OCT,2022 | MEDC
RBI recently released a concept note on an Indian Central Bank Digital Currency (CBDC) attempting to address current concerns about this new form of money and justifying its adoption. The note claims the e-rupee will provide a better payments infrastructure through enhancing resilience by providing payment services even outside the commercial banking system. It can help diversify the range of payment options, especially for e-commerce. It could provide a viable alternative to acquiring crypto assets, and also boost the international payments infrastructure by making cross-border transactions cost-effective. As India is the world's largest recipient of remittances, the lowering of such transaction costs will benefit us. It will also reduce friction in cross-border payments required for global trade. However, this will necessitate building a global dimension into the CBDC design. It is an experiment worth conducting.
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