C S Setty, the Managing Director of State Bank of India (SBI) has said that the central bank digital currency (CBDC), which are digital assets issued by central banks, is going to be a reality soon. He also added that it will play a key role in cross border transactions. At present, the Reserve Bank of India (RBI) is working on two sets of CBDCs, one is wholesale account-based and the other is retail-based.
"While crypto currency would be an asset class... I think CBDC is eventually going to transform how cross-border transactions take place...my reading is that it is only a matter of time , there is no way countries across the world can stay away from CBDC," Setty said while addressing participants at the ISB Leadership Summit 2021 on the 'Future of banking'.
He mentioned that the introduction of CBDC is expected to throw up many questions like what happens to the intermediation role of the bank and also how it will impact the monetary as well as fiscal policies of the country.
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