Don't Create Fear Psychosis Over Privacy Concerns, Shaktikanta Das On CBDC Former RBI governor, D. Subbarao has said that anything digital that leaves a footprint can have various solutions
By Teena Jose
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RBI governor Shaktikanta Das, on Wednesday, said that there is no need to create a 'fear psychosis' in the minds of people over privacy concerns, affirming the newly-introduced central bank digital currency (CBDC) does not leave any trail with a bank, according to a PTI report.
"The pilot on the wholesale central bank digital currency (CBDC) has been very satisfactory, and the RBI is keen to pick up learnings from the ongoing pilot for the retail CBDC and implement them," said Das in a statement during the post-policy press meet.
Being asked on the possible raids by agencies like Enforcement Directorate in the future as the CBDC does not possess the anonymity which the paper currency provides, the governor said that one should not be worried over the privacy concerns. In his words, "Let's be clear, when you pay in currency notes to another person, here also incidentally, let me say, you cannot find out because the information is not available to the bank. The bank does not know."
Furthermore, he asked, "It (CBDC) goes from my mobile to somebody else's mobile. So why should we create this fear psychosis.?"
Governor also reportedly pointed out that, "The income tax department has certain limits for cash payments, for withdrawals beyond a certain limit, you have to give your PAN card number. The same rules will apply in the case of CBDC also because both are currency."
On this ground many discussions have taken place. Many experts have flagged concerns over the privacy aspect of CBDC. Former RBI governor, D. Subbarao, on Wednesday, has reportedly said that, "How anonymity is to be ensured in the case of digital currency, because the normal understanding is that anything digital leaves a footprint can have various solutions."
Both Shaktikanta Das and also T Rabi Sankar explained that the CBDC is different from the Unified Payments Interface (UPI), which operates through a link to a person's bank account, stated the report.
