Waiting for other countries to unveil digital currency: RBI

The Reserve Bank of India (RBI) is waiting for other countries to launch digital currency and is in no hurry to roll out Central Bank Digital Currency (CBDC) nation wide for retail, said Deputy Governor Rabi Sankar.

“We’re in no hurry because, you see, for this system to launch, you also have to have other countries launching it simultaneously,” Mr. Sankar said on the sidelines of Global Fintech Fest on Tuesday. He said the most appropriate use-case for a CBDC was cross border payments, although he did not rule out a retail unveiling.

Mr. Sankar’s comments assume significance in light of Finance Minister Nirmala Sitharaman’s recent observation that it was time for nations to prepare for adoption of stable coins.

The Global Fintech Fest saw the unveiling of biometric authentication for UPI payments by the National Payments Corporation of India (NPCI). The biometric authentication on-device can be used in place of the PIN that has been in use since UPI was launched in 2016.

Secretary to the Department of Financial Services at the Ministry of Finance M. Nagaraju unveiled the feature. The facility will be made available to customers who choose to opt, giving them control over their preferred mode of authentication, the announcement said. “Each transaction is independently verified by the issuing bank using robust cryptographic checks, ensuring the highest level of safety while keeping the experience simple and seamless,” the NPCI said.

The biometric system is expected to widely benefit senior citizens and first-time users.