The Central Bank Digital Currency (CBDC) is ‘not an unmixed
blessing’, said the Reserve Bank of India (RBI) in its latest report on currency and finance. As per the RBI, the virtual tokens increase financial inclusion and transparency but may take away low-costs deposits from banks with impacts on the economy. However, it poses a risk of disintermediation of the banking system, the report says.
Stating the benefits of CBDC, the RBI observed that it could be designed to endorse financial inclusion by direct benefit transfer, endorse non-anonymity at a personal level and regulate transactions. Adding more, the RBI added that CBDC could help pump central bank ‘helicopter money’.
The RBI also stated that CBDC could be beneficial in directing public consumption to a select segment of goods and services to augment social welfare and cumulative demand.