Page 44 - Banking Finance December 2021

ARTICLE

CENTRAL BANK

DIGITAL

CURRENCY -

THE FUTURE OF

MONEY

Introduction: After this, Indian banks have tried to curtail transactions
with crypto-exchanges as, in their view, they are governed
The world has witnessed number of civilizations like Indus
by RBI. But later, RBI mentioned that banks cannot quote
Valley, Mohenjo-Daro etc. Apart of its magnificent
its 2018 ban to customers as it was overruled by the
architecture the one thing that amazes the world is the
Supreme Court, paving the way for crypto trading to
discovery of coins casted in different metals thus adding to
continue in India. Around 15 million Indians are believed to
its monetary value which hints that along with the barter
have made investments in private crypto currency holdings.
system the business of that era ran on currencies too. With
Crypto currency investments in the nation increased from
the advent of modernization and globalization there has
been massive transition in financial and economic sector. $923 million in April 2020 to almost $6.6 billion by May
Crypto currency marks the beginning of a new era. 2021, a growth of about 400% in only one year.
In concurrence, Central Bank, the country's banking
The Reserve Bank of India in 2018 came out strongly against
regulator, has arrived at an amicable update to its
crypto currencies in India but in 2020, the Supreme Court
implementation of a digital currency, which is expected to
of India reversed the RBI ban. That move was welcomed by
materialize by end of 2021. The central bank-authorized
the crypto exchanges and investors throughout the country.
digital or electronic currency will be a legal tender unlike
crypto-currency.
About the author
However, the Central Bank also clarified that the CBDC, as
Rohit Narain Singh a legal tender, is different from other private digital/virtual
Sr. Manager (Faculty) currencies like bitcoin, dogecoin, ethereum etc. that have
Union Bank of India mushroomed over the last decade. It is interesting to note
Staff Training Centre, Lucknow that central banks across the world, including in the US,

44 | 2021 | DECEMBER | BANKING FINANCE