While the world’s attention is focused on India’s future in crypto, Reserve Bank of India (RBI) Governor Shaktikanta Das recently expressed his worries over the country’s central bank’s digital currency (CBDC). Consumer safety is one of the main motivations for the development of CBDCs, as opposed to the centralized character of government-backed digital currency.
In response to the CBDC launch, Das stated that the RBI has serious concerns about cyber security and digital fraud. Das compared the danger to cyber security and potential digital frauds posed by CBDC to the former issue of fake paper currency, Indian Rupees. He highlighted the importance of being extra cautious by putting in place a robust CBDC security system along with strong firewalls.
RBI always is known for its tough stance against digital assets. However, the recent decision of the finance minister over the crypto regulation has calmed the investors down, who were all panicked by crypto ban FUD.
Das told Business Today by stating, “The main concern comes from the angle of cyber security and the possibility of digital frauds. So, we have to be very careful about that just as a few years ago we had a major concern on fake Indian currency notes.” He showed his concerns over the launch of CBDCs and added,” In a CBDC universe, we have to be that much more careful with regard to ensuring cyber security and taking preventive steps to prevent any kinds of frauds because there will be attempts.”
RBI to launch CBDC by March 2022 end
The central monetary authority, RBI, in November confirmed that they are expecting to launch CBDC by the first quarter of 2022.
However, the government is focusing more on the crypto bill than the CBDC launch and might push the launch date to sometime later this year. TheCoinRise found through a source that the cabinet documents in India are suggesting the private wallet ban, which is concerning Indian investors, putting a question on the country’s understanding over the blockchain technology.
The biggest question is on the CBDC launch without a proper testing phase when countries like China are conducting robust CBDC testing rounds before the final launch. China recently reported two major frauds using digital yuan: one is money-laundering using digital yuan, and the other also shows inclusion of digital yuan in fraud in the Xiongan district in China.