A significant number of cryptocurrencies tested resistance zones over the weekend, with many closing candles above these levels. But today the wind is blowing in the opposite direction, Bitcoin (BTC) dropped below $48,000. The Reserve Bank of India touched on the CBDC issue with its new statement.
New Statement from Reserve Bank of India!
In a report released today, the Reserve Bank of India revealed the benefits of CBDC and its possible future in India. Postponing crypto-related legislation, India is keeping up with the rest of the world and exploring the advantages of digital fiat currency.
The report clearly praises the blockchain-based currency:
This is where the Reserve Bank of India is also arguing in favor of CBDCs for efficient cross-border payments. Therefore, we can see that more concrete steps are taken on CBDC in the near future.
There is also an important detail in the RBI’s Trend and Progress Report dated 28 December.
“Given the dynamic impact on macroeconomic policymaking, it is necessary to adopt fundamental models from the outset and test them extensively so that they have minimal impact on monetary policy and the banking system. Measuring the size of the issue/distribution will also help determine the appropriate underlying technology that is best suited to handle such operations”.
India is running two separate CBDCs for retail banking customers and corporates. It is not known which of these will start piloting first.
India and Cryptocurrencies
The recently concluded Winter Session of the Indian Parliament brought to light the RBI’s e-rupee plans. We know that the central bank has submitted a CBDC proposal to Parliament. And it was announced that the Central Bank is working on a “progressive implementation strategy” to introduce the Digital Currency to Indian users.
The reports stated that this was done to allow the scope of banknotes to be expanded without much disruption to the financial market. However, these statements come after RBI’s tough stance against private cryptos like Bitcoin. With the introduction of the digital rupee, similar to China’s CBDC process, it would not be surprising that a new wave of bans has begun. The strategy followed by China has now made CBDCs a threat to the cryptocurrency industry.