{"id":38158,"date":"2021-03-01T21:03:08","date_gmt":"2021-03-01T19:03:08","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=38158"},"modified":"2025-08-30T03:14:16","modified_gmt":"2025-08-30T00:14:16","slug":"rbi-weighs-the-pros-and-cons-of-a-cbdc","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/rbi-weighs-the-pros-and-cons-of-a-cbdc\/","title":{"rendered":"RBI weighs the pros and cons of a CBDC"},"content":{"rendered":"<p><span style=\\\"font-weight: 400;\\\">The launch of a national digital currency (CBDC) could broaden access to financial services, but may undermine the role of lending institutions. This is according to a new RBI study.<\/span><\/p>\n<p>\\n<\/p>\n<p><!--more--><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">According to RBI officials, the CBDC design contemplates no user anonymity, transaction monitoring, and financial inclusion through the option of direct helicopter-money payments. The latter could lift aggregate demand in the economy and be seen as a means of supporting the population.<\/span><\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-embedded-content\\\" data-secret=\\\"BK4U6d1EQ6\\\">\n<p>\u201cHelicopter money\u201d: a remedy for a crisis or another misconception of the traditional school of economics<\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p><iframe loading=\\\"lazy\\\" class=\\\"wp-embedded-content\\\" sandbox=\\\"allow-scripts\\\" security=\\\"restricted\\\" style=\\\"position: absolute; visibility: hidden;\\\" title=\\\"\u201c\u201c\u0412\u0435\u0440\u0442\u043e\u043b\u0435\u0442\u043d\u044b\u0435 \u0434\u0435\u043d\u044c\u0433\u0438\u201d: \u0432\u044b\u0445\u043e\u0434 \u0438\u0437 \u043a\u0440\u0438\u0437\u0438\u0441\u0430 \u0438\u043b\u0438 \u0435\u0449\u0435 \u043e\u0434\u043d\u043e \u0437\u0430\u0431\u043b\u0443\u0436\u0434\u0435\u043d\u0438\u0435 \u0442\u0440\u0430\u0434\u0438\u0446\u0438\u043e\u043d\u043d\u043e\u0439 \u0448\u043a\u043e\u043b\u044b \u044d\u043a\u043e\u043d\u043e\u043c\u0438\u043a\u0438\u201d \u2014 ForkLog\\\" src=\\\"https:\/\/u1f987.com\/exclusive\/vertoletnye-dengi-vyhod-iz-krizisa-ili-eshhe-odno-zabluzhdenie-traditsionnoj-shkoly-ekonomiki\/embed#?secret=NMcMNRXGd1#?secret=BK4U6d1EQ6\\\" data-secret=\\\"BK4U6d1EQ6\\\" width=\\\"500\\\" height=\\\"282\\\" frameborder=\\\"0\\\" marginwidth=\\\"0\\\" marginheight=\\\"0\\\" scrolling=\\\"no\\\"><\/iframe><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">CBDCs with interest payments could improve the economy\u2019s responsiveness to changes in monetary policy, RBI said.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">According to the study, in developing markets with substantial foreign capital inflows, national digital currencies can play a \u201csterilising\u201d role. It involves neutralising the consequences of the limited capacity of the domestic government bond market.<\/span><\/p>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">Analysts say CBDC could also reduce the role of financial intermediaries in transmitting monetary policy.<\/span><\/p>\n<p>\\n\\n<\/p>\n<blockquote>\n<p><i><span style=\\\"font-weight: 400;\\\">\u201cHouseholds could convert deposits in fiat into CBDC, thereby raising funding costs. This would affect economic growth and financial stability [banks would be forced to either raise lending rates or curb their lending],\u201d the analysts noted.<\/span><\/i><span style=\\\"font-weight: 400;\\\"> <\/span><span style=\\\"font-weight: 400;\\\">\u2014<\/span><span style=\\\"font-weight: 400;\\\"> noted the analysts.<\/span><\/p>\n<\/blockquote>\n<p>\\n<\/p>\n<p><span style=\\\"font-weight: 400;\\\">The central bank\u2019s analysts noted the risks of money laundering and terrorist financing if the CBDC project envisages some form of anonymity.<\/span><\/p>\n<p>\\n<\/p>\n<p>In January, the RBI began <a href=\"https:\/\/u1f987.com\/en\/news\/india-weighs-launch-of-its-own-digital-currency\">the study of the potential of the digital rupee<\/a>.<\/p>\n<p>\\n<\/p>\n<p>During the upcoming budget session, the parliament will consider the government-proposed <a href=\"https:\/\/u1f987.com\/en\/news\/indian-parliament-to-consider-bill-banning-cryptocurrencies\">bill to ban<\/a> digital assets. Authorities have promised that <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-india-to-allow-cryptocurrency-holders-to-close-positions-ahead-of-ban\">the transition will be gradual<\/a>.<\/p>\n<p>\\n<\/p>\n<p>Subscribe to ForkLog&#8217;s Telegram news: <a href=\\\"https:\/\/t.me\/forkloglive\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">ForkLog FEED<\/a> \u2014 the full feed of news, <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">ForkLog<\/a> \u2014 the most important news and polls.<\/p>\n<p>\\n<\/p>\n<p style=\\\"margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; display: block;\\\"><a style=\\\"text-decoration: underline;\\\" title=\\\"View Reserve Bank of India 2021 on Scribd\\\" href=\\\"https:\/\/www.scribd.com\/document\/496532451\/Reserve-Bank-of-India-2021#from_embed\\\">Reserve Bank of India 2021<\/a> by <a style=\\\"text-decoration: underline;\\\" title=\\\"View ForkLog's profile on Scribd\\\" href=\\\"https:\/\/www.scribd.com\/user\/456422024\/ForkLog#from_embed\\\">ForkLog<\/a> on Scribd<\/p>\n<p>\\n<\/p>\n<p><iframe loading=\\\"lazy\\\" id=\\\"doc_6688\\\" class=\\\"scribd_iframe_embed\\\" title=\\\"Reserve Bank of India 2021\\\" src=\\\"https:\/\/www.scribd.com\/embeds\/496532451\/content?start_page=1&#038;view_mode=scroll&#038;access_key=key-IXE57vrAHdBMVvJBuOHi\\\" width=\\\"100%\\\" height=\\\"600\\\" frameborder=\\\"0\\\" scrolling=\\\"no\\\" data-auto-height=\\\"false\\\" data-aspect-ratio=\\\"0.780952380952381\\\"><\/iframe><\/p>\n<p>\\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The launch of a national digital currency (CBDC) could broaden access to financial services, but may undermine the role of lending institutions. This is according to a new RBI study.<\/p>\n","protected":false},"author":1,"featured_media":38159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1095,809,278,167],"class_list":["post-38158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cbdc","tag-central-banks","tag-india","tag-research"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/38158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=38158"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/38158\/revisions"}],"predecessor-version":[{"id":38160,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/38158\/revisions\/38160"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/38159"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=38158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=38158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=38158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}