Billionaire Nikhil Kamath says those critical of digital rupee 'might be missing the big picture'

Nikhil Kamath, co-founder of Zerodha

Zerodha co-founder and billionaire Nikhil Kamath on Saturday spoke in favour of Central bank Digital Currency (CBDC) and said that those critical of it are missing the big picture.

The first pilot of the wholesale digital currency was launched by the RBI on October 31.

"While many have been critical of CBDC, we might be missing the big picture, remittances, unbanked economy, and reducing subsidy leakage, to name a few," Kamath tweeted. "When anything new comes into the market, the old need to adapt, and the new need to regulate the change."

While many have been critical of #CBDC, we might be missing the big picture, remittances, unbanked economy, and reducing subsidy leakage, to name a few.

When anything new comes into the market, the old need to adapt, and the new need to regulate the change. pic.twitter.com/pVdzDQ3nbN

— Nikhil Kamath (@nikhilkamathcio) November 12, 2022

Nikhil Kamath's tweet ignited another debate on the digital rupee with most voicing concerns over safety.

"CBDC are definitely bad for the user, police states like China can block withdrawals etc.... put hefty fine of $2,500 for free speech before backtracking," responded Twitter user Rohit Surana.

Another user Rishabh Narang wrote, Who's going to be the Validators of the blockchain (assuming POS) besides RBI? We know it's going to be a centralized blockchain overviewed by RBI/GOI, but how can it be protected from the hacks that are happening at such fast pace these days in crypto?"

"It’s very Orwellian! Around 100-200 people have control of a billion peoples finances," commented Sagar Vishwanath."

Currently, the RBI has identified nine banks to participate in the first pilot of digital rupee in the wholesale segment: State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC.

Read more: Elon Musk, don't make not having a blue tick on Twitter the new cool: Zerodha's Nikhil Kamath