RBI Governor: Future of Money Is Digital, CBDCs Key to Global Payments
At the G30 Annual International Banking Seminar in Washington DC, Reserve Bank of India (RBI) Governor Shaktikanta Das stressed that the future of money must be digital, particularly through Central Bank Digital Currencies (CBDCs).
Speaking at a panel discussion on the future of money and payments, Das urged for multilateral cooperation to facilitate cross-border payments using CBDCs, describing them as a model for efficient, low-cost, and fast money transfers.
CBDCs for Cross-Border Payments
Highlighting the potential of CBDCs, Das said, “The biggest potential for CBDCs going forward will be cross-border money transfer. It avoids various intermediaries, making the process faster and more economical.” He advocated for initial multilateral arrangements, which can eventually scale up to a global level to revolutionize cross-border payments.
Collaboration for CBDC Success
Das called for global cooperation in designing CBDCs and establishing legal frameworks, stressing the need to address risks such as currency substitution, capital flow volatility, and shock transmission. He clarified that CBDCs are distinct from fast payment systems like UPI, stating, “CBDC is a currency, while UPI is a payment system. They can be interoperable and act as backups during crises.”
The RBI introduced India’s digital rupee in 2022, aiming for broader accessibility. Das expressed optimism about UPI’s growth, targeting a milestone of 1 billion daily transactions by next year.
