India’s central bank warns lenders about CBDC deposit erosion

India’s central bank deputy governor has urged lenders to prepare for the impact of the country’s central bank digital currency on deposits, while ruling out any role for stablecoins in the country’s banking system. T Rabi Sankar told ‪@FTTheBanker‬ that lenders needed to be mindful of the impact the Digital Rupee would have on business models in transaction services in particular, with the new digital currency likely to displace deposits used for such purposes. Read Sweta Roy's exclusive interview on ‪@FTTheBanker‬ : https://www.thebanker.com/content/f58... Timestamp 00:00 - The Technology Behind CBDC and Crypto 00:01:46 - Why Money Must Remain Fiat-Backed 00:03:31 - CBDC as the Digital Counterpart to Cash 00:04:36 - Programmability and New Use Cases 00:05:03 - Reducing Cost and Time in Global Remittances 00:06:01 - CBDC as a Diversification Tool for UPI 00:07:04 - Impact on the Banking System & Settlement Risk 00:08:10 - The Risk of Deposit Erosion 00:09:44 - RBI’s Stance on Stablecoins 00:11:13 - Why CBDC is the Safer Option Subscribe to The Banker magazine for all your banking news, analysis and opinion across the banking industry: https://www.thebanker.com/Subscribe?u... The Banker is a service by The Financial Times. #banking #TheBanker #TheBankerMagazine #finance #banks #commercialbanking #investmentbanking #globalbanking #bankingindustry #bankingnews #financialjournalism #India #stablecoin #stablecoins #digitalcurrency #bitcoin The Banker magazine has been a trusted source of global banking information since 1926 and has navigated its way through decades of banking coverage from the Wall Street Crash of 1929 to the subprime crisis of 2008 with the same reputation for accuracy, authority and integrity. The Banker delivers unique insights and analysis to the world’s leading CEOs, CFOs, CIOs, corporate treasurers, central bank governors, institutional investors and finance ministers. The Banker has unique access to the most influential decision makers in the financial world. With informed opinion, a platform for thought leaders, big name interviews and a unique banking industry database, it provides one of the most comprehensive and respected voices in the financial media.