SBI: Digital currency to play key role in cross-border deals

HYDERABAD: Even as the country awaits clarity on the

cryptocurrency regulatory framework

,

State Bank of India

(SBI) managing director C S Setty said the central bank digital currency (CBDC), which are digital assets issued by central banks, is going to be a reality soon and will play a key role in cross border transactions. Currently, the Reserve Bank of India (RBI) is working on two sets of CBDCs - one wholesale account-based and the other retail-based.

"While crypto currency would be an asset class... I think CBDC is eventually going to transform how

cross-border transactions

take place...my reading is that it is only a matter of time , there is no way countries across the world can stay away from CBDC," Setty said while addressing participants at the ISB Leadership Summit 2021 on the 'Future of banking' here on Saturday.

He pointed out that the introduction of CBDC is expected to throw up many questions such as - what happens to the intermediation role of the bank and also how it will impact the monetary as well as

fiscal policies

of the country.