Banks are working on a digital fiat, or Central Bank Digital Currency (CBDC), to ensure greater ease of transaction, Debadatta Chand, Bank of Baroda's Chief Executive Officer and Managing Director said on on February 13.
"...a lot of banks are working on CBDCs, to create ease of doing transactions that can be far better as compared to any other mode of transaction," Bank of Baroda's Chand said at the IBEX India event in Mumbai on February 13.
CBDC is a currency backed by a regulator, and stored in the digital format.
It can be converted into paper currency and will reflect on the RBI's balance sheet, thereby granting it the status of a legal tender.
Chand further said that CBDCs will revolutionise the entire payment space. "I think we must work on improve the CBDC," he added.
The CBDC-retail (CBDC-R) pilot currently enables person-to-person (P2P) and person-
to-merchant (P2M) transactions using digital rupee wallets provided by pilot banks. The
programmability and offline functionality in CBDC-R are being tested by the RBI, under the pilot.
On cyber security, BoB CEO and MD said that the banking industry needs to work on protecting the sanctity of the financial system.
"I think the tech partners and the tech people can work to figure out what is the structure you can create on cyber security, so that the customer's data is protected," Chand said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
