Ajay Kumar Choudhary, executive director of the Reserve Bank of India informed in one of the interactive sessions that the introduction of digital currency will significantly improve the operational efficiency of the system and promote financial inclusion.
The digital rupee will add resilience linked to innovation in payment methods, claimed Choudhary. He added that the digital rupee will also foster innovation in the field of international payments. CBDC is believed to deliver the desired experience while protecting consumers and avoiding negative social and economic impacts, and avoiding negative social and economic impacts.
Digital currency, according to Choudhary, will meet the strategic needs of the moment. According to him, digital currency is more likely to supplement existing payment systems than to replace them. It will give users different options as payment methods.
In order to create a system that is inclusive, competitive, and responsive to innovation and technological change, he said, the Reserve Bank of India will take progressive steps to ensure the issuance of CBDC follows the right approach with adequate safeguards to deal with any potential difficulties and risks.
Based on the central bank's digital currency (CBDC) tracker, nearly 105 countries, representing 95% of global GDP have taken steps to integrate digital currencies into their economic systems. 50 countries of which are in an advanced stage of exploration.
So far China is the most advanced country in trying to implement digital currency. A series of tests were conducted for several industries and cities.
