Arbitrum (arb) 
India Expands Mobile Payment Ties with Other Countries Using CBDCs
The Reserve Bank of India (RBI) is working to establish mobile payment ties with other countries to enhance cross-border payments, trades, and remittances through Central Bank Digital Currencies (CBDCs).
CBDCs: A Game-Changer for Cross-Border Transactions
Deputy Governor of the RBI, T. Rabi Sankar, has shared that India is collaborating with several countries to develop its mobile payment infrastructure. Talks are underway with the UAE and other neighboring nations, with arrangements already in place with Sri Lanka, Bhutan, and Nepal.
The RBI is also partnering with ASEAN central banks to create a regional platform for instant cross-border payments, further solidifying its position as a leader in CBDC technology.
Security Measures and Regulatory Framework
The RBI has set up a committee, the Committee on Payments and Market Infrastructures, to address security concerns surrounding CBDCs, including Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) compliance.
Officials emphasize the importance of a robust regulatory framework in place to support the development of CBDCs and ensure their widespread adoption in India.
Benefits of CBDCs for India
CBDCs offer several advantages, including trust and regulation, reduced intermediaries, and lower international payment costs and delays.
“CBDCs will have a clear advantage in trust and regulation. As they are issued and backed by the RBI, they carry the assurance of sovereign stability. They are also more likely to gain widespread adoption in India due to government support and their integration into the existing financial ecosystem.” – Raj Kapoor, Founder & CEO, India Blockchain Alliance
The Road Ahead for CBDCs in India
Raj Kapoor, founder and chairman of the India Blockchain Alliance, believes that CBDCs will significantly improve cross-border financial systems in India, citing the potential for lower remittance costs and quicker transfer times for expats.
“We need to have our policy and a robust regulatory framework in place. Without that, we shall flounder and stutter. We have all the ducks lined up, and it’s now a question of when!”
Conclusion
India’s dedication to improving its cross-border payment systems through CBDCs has the potential to transform the country’s digital financial landscape, leading to increased financial inclusion, trust-building, and a leap in cross-border trade and payments.
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