The Governor of the Reserve Bank of India, Shaktikanta Das, reaffirmed his positive stance on Central Bank Digital Currency, emphasizing the potential of the Indian digital rupee to mitigate uncertainties linked to cryptocurrencies.

CBDC's Role Against Cryptocurrencies

Governor Das has shown prolonged support for the Indian Digital Rupee, emphasizing the vital role of CBDC in alleviating uncertainty caused by cryptocurrencies. He noted that CBDC could offer a more stable and controllable digital currency, potentially reducing volatility and risks.

CBDC and AI Risks

Das highlighted that CBDC could facilitate faster and more efficient transactions in cross-border payments, mentioning plans to extend the real-time gross settlement system to major currencies like the USD, Euro, and GBP. However, he expressed concerns about possible AI misuse in banking.

Impact of CBDC on India's Economy

The deployment of CBDCs in India can significantly strengthen the country's digital financial infrastructure. Although supportive of CBDC, Das remains cautious about Bitcoin and altcoins. Nevertheless, RBI and SEBI are moving towards a comprehensive crypto policy.

The advantages of CBDCs for the Indian economy and the reduction of cryptocurrency-related risks could play a significant role in strengthening the country's digital financial infrastructure. However, this could also negatively impact cryptocurrency demand.