RBI to launch its cryptocurrency by December 2021

Reserve Bank of India is extremely careful regards to the launch of the cryptocurrency as it is not only a new product for RBI but also globally.

Tesla India officials meet MoRTH secretary in Delhi for a test drive
Image source: Shaktikanta Das Twitter

The Reserve Bank of India (RBI) may launch a pilot of its digital currency by December 2021. However, the RBI will launch the currency either by using distributed ledger technology (DLT) or a centralised ledger. DTL is a cryptocurrency-based platform that enables trading without any central authority. 

Reportedly, RBI governor, Shaktikanta Das indicates that RBI is on track with its plans for a central bank digital currency (CBIC). Reserve Bank of India is extremely careful regards to the launch of the cryptocurrency as it is not only a new product for RBI but also globally. The bank is right now studying various aspects of digital currency that include security, impact on India's financial sector, effect on monetary policy, and currency circulation.  

On August 6 the RBI deputy governor T Rabi Sankar said that the central bank will come out with a mode for operations of fiat digital currency by the end of the year. The cryptocurrency of RBI will launch when it has mounting concerns over the rising popularity of cryptocurrencies. Though the Supreme Court has lifted the ban on banks providing services to companies dealing in cryptocurrencies.