Govt pushes CBDC amid crypto concerns

The government will promote a central bank digital currency (CBDC) as an innovative and cost-effective payment solution but it may not put to rest the Reserve Bank of India's (RBI) concerns regarding private cryptocurrency, such as risks to macroeconomic stability, by allowing any private crypto asset as a legal tender, two officials said.

- Rajeev Jayaswal

A synthesis paper of the International Monetary Fund and Financial Stability Board highlighted these risks to the G20 nations in September and proposed a minimum threshold for regulation, they said, requesting anonymity.

"The paper doesn't stop any country from imposing higher restrictions, as stringent as a complete ban," one of them said. "The government and financial sector regulators, including the RBI, are seized with the matter."