Key Points
The Reserve Bank of India (RBI) is evaluating tokenising assets such as government bonds and customer deposits to expand the usage of its digital currency, two bankers aware of the developments told ET...
This would have the twin benefit of widening digital currency usage beyond the simple merchant payments at present and also help boost retail participation in the government bond market..
If government securities are tokenised, then they should ideally be bought with digital currency, which would make the settlement system instantaneous, he said, adding it would encourage CBDC adoption...
But these are some early thoughts the central bankers are engaging in, they said.. Banks are incentivising customers to start using digital currency for their daily transactions..
Blockchain-based deposits are equivalents of existing deposits recorded in a novel form used to pay, settle trades between digital assets, and generally act as a store of value and means of exchange, the report said...
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