Finance Minister Nirmala Sitharaman had announced in her February budget speech that the RBI would come up with a CBDC during the current fiscal year.
“After taking into account concerns regarding anonymity, appropriate analytics of Big Data generated from CBDC can help make evidence-based policy making. It can also become a rich source of data for service providers for insights into financial products,” he said. the note.
Furthermore, the data would be very useful for the enforcement of money laundering regulations. It can also generate intelligent leads that can help reduce non-compliance with existing rules and regulations, thus aiding a risk-based approach to curb money laundering by identifying potential risks and helping to develop strategies to reduce it, it said.
The RBI note therefore underlines that it is important that the technical choices are not frozen when the design choices are crystallized in the initial phase.
“As technology evolves, policy-related and security-related considerations will also change. Therefore, it is necessary to have an open-ended, flexible approach while focusing on the technical choices,” the note said.
“It is also imperative that when engaging a technology service provider there should be no vendor lock-in and in the event that proprietary systems are used, there should be clauses to allow full ownership by the Central Bank,” the note said. .
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