The Reserve Bank of India’s research aims to evaluate the potential for tokenization of assets and government bonds as a potential feature of the Central Bank Digital Currency (CBDC). While quantitative aspects are not a priority here, the key objective is to test the technology in practical usage.
As part of these pilot studies, an important aspect is to examine how businesses will interact with this new technology, what computational capabilities they will have, and how people will interact with it. Transactions have been significantly limited compared to the initial goal of 1 million transactions due to new technologies such as artificial intelligence and quantum computing, which place a strong emphasis on security systems and encryption.
Sankar, an expert from the Reserve Bank of India, recognizes that despite the risk of job loss, banking will continue to evolve with technological advancements, necessitating the need to adapt and embrace artificial intelligence by bankers.
Still, one of the main challenges that requires technological and regulatory changes is the issue of cybersecurity to keep up with the pace of technological development. Sankar argues that this situation is changing rapidly, and the law will have to adapt to these new trends. This means introducing new regulations and solutions that will protect against threats related to advanced cybercrime and new technologies.
The conclusion from these studies is that in today’s world, where technology is advancing at a rapid pace, it is necessary for institutions and regulations to be flexible and open to new solutions. Introducing innovations such as a central digital currency not only brings benefits to the economy but also poses challenges that must be addressed effectively and responsibly.