With RBI's announcement of digital currency project, here's what Pratik Gauri, Co-Founder and CEO, 5ire has to say

The announcement by Finance Minister Nirmala Sitharaman for the central bank's introduction of Central Bank Digital Currency (CDBC) in 2022-23 created a new wave of speculations about RBI's foray into a digital economy as the first major central bank to do so.

In Union Budget 2022, Finance Minister Nirmala Sitharaman highlighted digital currency as one of the important agendas of this year. Now with the announcement of RBI that digital currency will be launched as a pilot project this year, we bring to you what Pratik Gauri, Co-Founder & CEO, 5ire has to say on this development:

"I must admit that as cautious as the government has been about both VAs and digital currency, it is a novel step to be taken by a central bank. It must be noted that this comes at the heels of "deliberation over the regulation of cryptocurrency and the earlier voiced "serious concerns" around private cryptocurrencies on the grounds that these may cause financial instability."

The announcement by Finance Minister Nirmala Sitharaman for the central bank's introduction of Central Bank Digital Currency (CDBC) in 2022-23 created a new wave of speculations about RBI's foray into a digital economy as the first major central bank to do so.

I applaud their approach to taking the advice of competent firms like US-based FIS in figuring out the entire ecosystem and connecting it to the current digital ecosystem of the RBI. However, as suspicious as the leadership of RBI has been about blockchain technology, I would be very surprised to see a decentralized system operating the CDBC. And a centralized system purposefully skirts innovation and development of a transparent and accountable system that in my opinion is what RBI should aspire for.”