Currency central: The future of money

In the process, both the UAE and Saudi Arabia, renewed the spotlight on a new trend sweeping the global financial sector and at the same time contributed to the learning quotient on CBDCs.

Presumably central banks would prefer to be part of the solution, in ensuring frictionless payments at low or no costs to consumers by tapping the same tech — and thereby stay ahead of potential competition.

Addressing a recent webinar hosted by the Vidhi Centre for Legal Policy on the CBDC, Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar very candidly admitted as much.

The geeky definition, sourced from IBM , is: “It (blockchain) is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

The subtext of this seeming faceoff between crypto currencies and the CBDC is as Eswar Prasad, Senior Fellow, Brookings Institution, explained in his just released book The Future of Money, a tipping point in global finance.

The proposed digital rupee to be issued by the RBI can instantly leverage the growing UPI platform to reach 200 million users — a difficult target for any country to match.

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