Central bank digital currency (CBDC), to be launched this year, could become a tool for reducing time and cost for cross-border transactions, Reserve Bank Deputy Governor T Rabi Sankar said on Wednesday.
The RBI has proposed to launch on a pilot basis this year, as announced in the Budget by Finance Minister Nirmala Sitharaman.
In the Union Budget for 2022-23, the finance minister had said the RBI would roll out a digital equivalent to the rupee in the current financial year.
“We have to understand that internationalisation of CBDC is crucial to addressing the payments issue that bodies like G-20 and Bank for International Settlements (BIS) are dealing with now,” he said at India Ideas Summit.
Observing that India has an excellent, cheap and fast domestic payments system, he said the cost of cross-border payment, however, is still high.
There is a lot of scope for improvement in terms of both cost and speed, he noted.
CBDC is probably the most efficient answer to this, he said, .

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