As per the report of Deloitte, the proposed Central Bank Digital Currency (CBDC), which will be issued by the Reserve Bank of India, will play a vital role in accelerating the transaction speed and reducing the cost of cash. RBI is working on introducing central bank-backed digital currency, using blockchain technology in 2022-23.
Encouraging the financial services innovation, Central Bank Digital Currencies are likely to play a significant role in shaping the ‘future of value transfer’, with the majority of the central banks worldwide are now in different stages of their evaluation of launching their national digital currencies.
Further in the report, it was stated that CBDCs will definitely improve the effectiveness and efficiencies of a jurisdiction’s payments system by ensuring that its users have secured digital money access. Moreover, it will provide users with sovereign options as compared to other digital tools that are less safe, leading to lower reliable payments.
