He said that the announcement made by Finance Minister Nirmala Sitharaman in the budget speech to launch Central Bank Digital Currency (CBDC) in the financial year 2023 will be implemented. The government had plans to introduce a bill in the last winter session of parliament on cryptocurrencies like bitcoin but it did not happen. Patra said, “RBI’s position on cryptocurrencies is clear. I think this is the reason why the bill has been delayed. We will have a fair debate on this issue and it will take care of all aspects.” RBI believes that cryptocurrencies should be completely banned as there is no value attached to them. Apart from this, they are also a threat to financial stability.
On CBDC, Patra said such an instrument already exists in the wholesale segment but it needs to be worked on for retail. “It will be moved very slowly because of monetary policy and privacy concerns. Also, there is a problem of high energy consumption if the process is done on a specific technology,” he said. He said that RBI will take careful steps on this issue.
Recently, former RBI governor D Subbarao had pointed out the privacy risks associated with CBDCs. The reason for this is its feature to track the entire movement of a unit. There is no control like Data Protection Act for this. He had said, “Because the RBI or the government should know how much ice cream I buy each month or which luxury brands I like. That’s why it’s somewhat difficult. I think there is a strong data protection law with CBDCs.” Data protection laws are very important in the issuance of CBDCs.”
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–
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