Investing.com – Betting on the upcoming launch of CBDCs in India, the Reserve Bank of India (RBI) has dismissed the idea that stablecoins should be accepted as cryptocurrencies on par with traditional currencies.
“We believe that central bank digital currencies (CBDCs) may actually be able to eliminate any disregard for private cryptocurrencies,” their deputy governor said.
The RBI deputy governor shared these thoughts at an IMF forum titled “At the Frontier: India’s Digital Payment System and Beyond.”
“Technology is changing at an extremely fast pace and I don’t think all innovations are desirable. In that regard, I expect the IMF to play a leading role in clarifying things, whether CBDCs or cryptocurrencies,” he said.
A currency needs an issuer or an intrinsic value. Many cryptocurrencies that are neither are still accepted at face value, he added.
India plans to phase out its CBDC in the current year.
Blockchain is in competition
The deputy governor compared blockchain to India’s Unified Payments Interface (UPI) interbank payment system: “One of the reasons for its success [UPI] is its simplicity… Introduced six to eight years before UPI was launched, blockchain is still considered a potentially game-changing technology today. use cases [de Blockchain] didn’t really establish themselves at the desired speed at the beginning.”
Launched in 2016, UPI processed more than 5 billion transactions in one month, while total transactions surpassed $1 trillion in March 2022 and approached $6 billion in May 2022. It has recorded an average transaction acceptance and growth rate of 160%. over the past five years.
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