Quote on RBI eyeing phased introduction` of digital currency - Gaurav Dahake, Bitbns
Below is quote on RBI eyeing phased introduction` of digital currency by Gaurav Dahake, Founder & CEO, Bitbns.
“A central bank digital currency will facilitate new aspects to work for the regulators, which were earlier hard to execute. However, with a digital currency in place, there is still some ambiguity in terms of how it can be governed or controlled. In the case of digital currency in the wake of an episode such as demonetization, the government can take immediate action by reducing the money floating .
Also since central banks will operate digital currencies, the only valid difference here will be that they will be governed by central banks. In contrast, cryptocurrency or a blue public blockchain like Bitcoin and Ethereum are yet not governed by any regulatory body. Hence, one might not be able to access a central bank digital currency, whereas in the case of Bitcoin, anyone can access it from anywhere across the globe.
However, this is a significant step and the positive impact is that it will help showcase the true value of cryptocurrencies or Block chain. Since the Central bank will be using a block chain to create a form of currency that could be nominated as a cryptocurrency, it will be called a CDBC - Central Bank digital currency. Also, with CDBC in place, a separate blockchain like Ethereum will exist in the system, making counterfeiting difficult. Besides, CBDC can be efficiently used in case of welfare schemes among others that needs to be administered directly into a person's account”. - Gaurav Dahake, Founder & CEO, Bitbns
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