One of the greatest obstacles in rolling out a central bank digital currency is the potential of cyber fraud, which necessitates systems to combat such nefarious activities, according to Reserve Bank of India (RBI) governor Shaktikanta Das.
Even in the CBDC world, Das pointed out, one must guarantee cyber security and take preventative measures to avoid any form of scam.
A central bank digital currency is a sovereign currency in electronic form that appears on a central bank's balance sheet as a liability (currency in circulation). According to a BIS poll from 2021, 86 per cent of central banks were actively researching the possibilities for CBDCs, 60 per cent were testing with the tech, and 14 per cent were conducting trial projects.
According to the BIS Annual Economic Report 2021, CBDCs can be developed for use only amongst financial intermediaries (wholesale CBDCs) or by the general public (retail CBDCs). The central bank has already made significant work on the wholesale component of the CBDC, according to RBI deputy governor T Rabi Sankar, although the retailing part would take longer.
