RBI’s digital foreign money to be like money, will not want intermediate settlements

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Digital currencies issued by RBI are just like cash and do not require interim billing and multiple hops.

The Reserve Bank of India’s upcoming digital currency, which will use a private blockchain platform, will reduce transaction processing processes.

The digital currency will be like cash and give the central bank tighter control over it.

“The digital currency issued by RBI will be just like cash, with no interim billing and multiple hops required,” Mint told a source.

Also read: RBI is working on digital currency, wants to use blockchain technology: That

Last month, RBI Governor Shaktikanta Das said that RBI has reservations about cryptocurrencies and is working on its own digital currency. The digital currency, so Das, will be different from cryptocurrencies. The central bank does not want to be left behind in the technological revolution, and the advantages of blockchain technology must be used.

RBI’s private blockchain platform will be like the Unified Payments Interface (UPI), on which state and private companies can create their own apps. While there have been initial discussions on the subject, the final decision to start working on it has not yet been made.

The central bank wants complete control over the digital currency, the publication quoted another source as saying. “The RBI did not want a distributed ledger like Bitcoin that uses a public blockchain. The RBI is essentially interested in opportunities and uses related to fraud prevention, counterfeiting and some of the specific benefits of the blockchain,” the source said.

Also read: The RBI envisages a ‚Äúcompetitive, efficient, heterogeneous‚ÄĚ banking sector with four types of banks: Shaktikanta Das