Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), reiterated his positive stance on Central Bank Digital Currency (CBDC). He highlighted the potential effectiveness of the Indian Digital Rupee, suggesting that it could mitigate uncertainties linked to cryptocurrencies.
CBDC’s Role Against Cryptocurrencies
Governor Das expressed long-standing support for the Indian Digital Rupee. He emphasized, “CBDC plays a crucial role in alleviating the uncertainty created by cryptocurrencies,” thus underscoring his cautious approach towards crypto assets. He also mentioned that CBDC could provide a more stable and controllable digital currency for India, potentially reducing the volatility and risks associated with cryptocurrencies like Bitcoin 
$93,304 and Ethereum 
$3,128.
Das called for reduced costs and transaction times for international money transfers, emphasizing the efforts to modernize cross-border payments with the digital rupee.
“Money transfers are vital for developing economies like India.”
CBDC and AI Risks
Das noted that CBDC could enable faster and more efficient transactions in cross-border payments. He also mentioned plans to expand India’s 24/7 real-time gross settlement (RTGS) system to facilitate transactions in major global currencies like the US Dollar, Euro, and British Pound.
“CBDCs offer a unique opportunity for India to lead in cross-border payments.” – Das
Das added that integrating CBDCs into global transaction simplification efforts would be beneficial. However, he acknowledged the challenges of developing a universal CBDC framework and expressed concerns about the potential misuse of artificial intelligence (AI) in the financial sector. While AI is powerful, he noted that it could make banks more vulnerable to cyberattacks and data breaches.
As the RBI Governor continues to share insights on CBDCs, he maintains a firm stance against Bitcoin and other altcoins. Nevertheless, in July, it was announced that the RBI and SEBI have taken steps towards establishing a comprehensive crypto policy for the country.
In conclusion, the advantages of CBDC for the Indian economy and the minimization of risks posed by cryptocurrencies could play a significant role in strengthening the country’s digital financial infrastructure. However, while this may favor Das, it could also negatively impact the demand for cryptocurrencies in the region, opening the door to a challenging scenario for overall markets.
