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CBDC Can Play A Key Role In Cross-Border Payments: RBI’s Das

We are even more sure that, aside from domestic transactions, CBDC will prove to be the most effective and efficient option for cross-border payments in particular, he stated earlier this month

Reserve Bank of India Governor Shaktikanta Das has stated that the central bank’s digital currency, the Central Bank Digital Currency (CBDC), can play a key role in cross-border payments without much trouble.

He stated that the Reserve Bank India (RBI) has conducted trial operations to promote the CBDC, with ‘great’ outcomes. The CBDC was implemented as a pilot in the wholesale and retail divisions and will now be expanded to the overnight money markets.

We are even more sure that, aside from domestic transactions, CBDC will prove to be the most effective and efficient option for cross-border payments in particular, he stated earlier this month during an engagement at the IMF Governor Talks.He underlined that, while paper currency will continue to exist, the CBDC will be the world’s future currency. CBDC is going to be the future currency of the world and it is necessary that every central bank, every country works on CBDC, he went on to say.

He also stated that the world is going towards technology and CBDCs play an important role since they can truly promote efficient, cost-effective and speedier payments across jurisdictions for cross-border transactions.

The governor also stated that the RBI does intervene in the market, but that ‘our intervention is both ways’. Das stated that the RBI sometimes buys and sometimes sells dollars depending on the direction of the market.