Report Wire - ‘Digital currency: Cyber security, frauds concerns’

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‘Digital currency: Cyber security, frauds concerns’

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The Reserve Bank of India on Wednesday mentioned cyber safety and digital frauds are its foremost considerations when contemplating the introduction of a central financial institution digital foreign money (CBDC).
“Our main concern comes from cyber security and possibility of digital frauds. So, we have to be very careful about that. Just as few years ago, we had a major concern over fake Indian currency notes … similar thing can happen when you are launching the CBDC,” RBI Governor Shaktikanta Das mentioned Wednesday at a submit financial coverage press convention.
“So therefore, in a CBDC universe, we have to be that much more careful with regard to ensuring cyber security, and taking pre-emptive steps to prevent any kind of frauds. Because there will be attempts so we have to have a robust system to combat it,” he added.
“On CBDC, there are two kinds of work that is currently going on. One is on wholesale account based, the other is retail,” RBI deputy governor T Rabi Sankar mentioned on Wednesday. “A lot of work is already done on wholesale accounts but the retail issue is slightly complicated and we will take some time on it. As soon as any of it is ready, we will release it on pilot basis,” he mentioned. However, he didn’t reveal any timeframe for introduction of the digital foreign money.
CBDCs are the digital or digital type of fiat currencies (just like the Indian rupee or US greenback). The Reserve Bank of India is engaged on a method to introduce a digital foreign money in a phased method, the finance minister had informed Lok Sabha earlier this week. These developments come at a time when the federal government is engaged on a legislation for regulating cryptocurrencies. Moreover, different central banks such because the US Fed and the People’s Bank of China are additionally planning their very own digital currencies.