RBI Governor suggested other central banks to promote CBDCs over stablecoin | Current Affairs | Vision IAS
This is part 1 of the SAME article body. Continue exactly from this fragment. Do not include a title. Output only the cleaned article body HTML for this part.
Notes Ecosystem
March 2024
The Indian government has been operating without an official leader of the opposition for almost two years, creating a potential concern in the parliamentary system.
Leader of Opposition in India:
The leader of the opposition plays a crucial role in the parliamentary system by providing an official alternative to the government, representing dissenting voices and viewpoints, and ensuring accountability.
Importance of Leader of the Opposition:
- The leader of the opposition is essential for representing the interests of minority parties and offering a different perspective on legislative matters.
- They serve as a check on the ruling party’s power, holding the government accountable for its actions and policies.
Challenges Faced:
In the absence of a designated leader of the opposition, several key challenges arise:
- Lack of structured opposition: Without a formal leader, opposition parties may struggle to coordinate their efforts effectively.
- Diminished accountability: The government may face reduced scrutiny and oversight in the absence of a robust opposition leader.
- Impact on parliamentary proceedings: The dynamics of debates, discussions, and legislative processes can be affected without a recognized opposition figure.
Legal Framework:
The concept of the leader of the opposition is not a mere convention but has legal recognition in India.
According to the Salary and Allowances of Leaders of Opposition in Parliament Act, 1977, the leader of the opposition is entitled to an official salary and perks similar to a Cabinet Minister.
Conclusion:
The position of the leader of the opposition is integral to the functioning of a healthy democracy. Clarity and guidelines regarding this role are essential to uphold the principles of accountability, transparency, and effective governance in the Indian political landscape.
Semiconductors: The ‘New Oil’ of the Digital Economy and India’s Quest for Global Resilience
Semiconductors: The ‘New Oil’ of the Digital Economy and India’s Quest for Global Resilience
October 2025
Semiconductors: The ‘New Oil’ of the Digital Economy and India’s Quest for Global Resilience
September 2025
Future of Multilateralism- Emerging Global Order
Age of War: Charting a path to Sustainable Peace
August 2025
Infrastructure Failures in India: A Crisis of Quality, Governance, and Accountability
December 2024
Technology’s Role in Redefining Indian Society
November 2024
India’s Bioeconomy: Pioneering Growth Through Innovation and Sustainability
Nudging in Policy Making
Reforming India’s Water Governance To Meet Emerging Challenges
Inclusive Wealth as a measure for Economic Development
September 2024
India’s Cultural Heritage: Preserving the past, Inspiring the future
June 2024
Threads of Transformation: India’s Textile Industry Weaving a Modern Future
May 2024
Redefining Governance: India’s Path to Administrative Reforms
March 2024
Beyond Metros: The Ascent Of India’s Tier 2 and TIer 3 Cities
Climate Change Negotiations (CCNs): From Rio (1992) to Dubai (2023)
Changing Dynamics of Family Structure in India
India’s Creative Economy: From Imagination to Innovation
February 2024
India Abroad: Legacy of Indian Diaspora
Social Identities and Structural Transformation in India
January 2024
Investment Ecosystem in India
Digital Inclusion in India: Building a Connected and Empowered Nation
Latest Edition
September
Latest Edition
2025
2024
Weekly Focus
Monthly Magazine
Economic Survey
Budget
Quarterly Revision Documents
Year End Review of Ministries
Previous Year Questions
The Planet Vision
Monthly Current Affairs Workbook
Personality In News
Records not found!
The suggestion comes in the backdrop of recent global developments such as Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), Digital Asset Basic Act bill of South Korea, etc.
About Central Bank Digital Currency (CBDC) and Stablecoin
- CBDC is a new form of money that exists only in digital form.
- Instead of printing money, the central bank issues widely accessible digital coins so that digital transactions and transfers become simple.
- A stablecoin is a programmable cryptocurrency whose value is pegged to another asset, most often the US Dollar or other currencies.
Why does CBDC need to be preferred over Stablecoin?
- Sovereign Backing: CBDC are considered legal tender, i.e. they are recognised and accepted by the government for every transaction.
- CBDCs operate within a regulated framework, ensuring consumer protection, etc. unlike many stablecoins which lack regulatory oversight.
- Cross-Border Payment Efficiency: CBDCs can simplify and speed up international trade payments, reducing reliance on intermediaries like SWIFT.
- Other: Better integration with monetary policy, promotes inclusive and low-cost public payment systems, etc.
CBDC in India
|
RBI Governor suggested other central banks to promote CBDCs over stablecoin
2 min read
The suggestion comes in the backdrop of recent global developments such as Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), Digital Asset Basic Act bill of South Korea, etc.
About Central Bank Digital Currency (CBDC) and Stablecoin
- CBDC is a new form of money that exists only in digital form.
- Instead of printing money, the central bank issues widely accessible digital coins so that digital transactions and transfers become simple.
- A stablecoin is a programmable cryptocurrency whose value is pegged to another asset, most often the US Dollar or other currencies.
Why does CBDC need to be preferred over Stablecoin?
- Sovereign Backing: CBDC are considered legal tender, i.e. they are recognised and accepted by the government for every transaction.
- CBDCs operate within a regulated framework, ensuring consumer protection, etc. unlike many stablecoins which lack regulatory oversight.
- Cross-Border Payment Efficiency: CBDCs can simplify and speed up international trade payments, reducing reliance on intermediaries like SWIFT.
- Other: Better integration with monetary policy, promotes inclusive and low-cost public payment systems, etc.
CBDC in India
- Digital Rupee is India’s CBDC.
- It is issued by the RBI in digital form and offers features similar to physical cash like convenience of use, guarantee of RBI, finality of settlement, etc.
- It is stored in the user’s digital wallet and can be used to receive / send money, and / or make payment for transactions, just like any physical ₹ note.
- The RBI is currently conducting pilot projects of two types of CBDCs – retail and wholesale.
- Retail CBDC: It is available to the general public via digital wallets, smartphone apps, etc.
- Wholesale CBDCs: Used among banks and other licensed financial institutions for interbank payments and securities transactions.
The UPSC Civil Services Examination (CSE) is one of India’s most prestigious tests, aimed at selecting candidates for diverse civil services roles such as IAS, IPS, and IFS. Administered annually by the UPSC, this examination is known for its rigorous selection procedure, encompassing Prelims, Mains, and a Personality Test/Interview.
Skills Required to Excel in UPSC CSE
The preliminary stage gauges foundational knowledge and cognitive abilities to identify serious aspirants for the Mains Examination. The Mains examination evaluates the aspirant’s ability to think critically, analyze complex issues, and communicate effectively through coherent and compelling answer writing. The final phase, i.e. Interviews, assesses an aspirant’s intellectual and social traits that reflect their ability to interact effectively with diverse groups and their readiness for a career in Civil Services.
Achieving Success with VisionIAS
Through its diverse range of initiatives and services, VisionIAS offers a holistic guidance and preparation platform for civil services aspirants, helping them cultivate the skills and competencies essential for success in the UPSC CSE, whether it’s the Prelims, the Mains, or the Personality Test.
This support encompasses highly innovative UPSC Classes, available through both online and offline/classroom ecosystems, enabling students to achieve optimal learning outcomes. VisionIAS offers its renowned All India UPSC Mock Test Series for GS Prelims, Mains, CSAT, Essay, and Optional Subjects, ensuring ongoing assessment and continuous enhancement of student performance.
A dedicated and dynamic Mentoring ecosystem provides personalized guidance to help students identify their growth areas and offers specific inputs that empower them to maximize their potential and achieve success.
VisionIAS stands out as one of the best IAS academies in the country due to its extensive physical presence in over 10 cities and its nationwide online reach. The institute’s pioneering innovations in UPSC online coaching, providing real-time support to students, set it apart in Civil Services guidance and support, helping students realize their dream of joining Civil Services to serve the nation.
Become a part of the VisionIAS Community.
Stay informed about crucial UPSC preparation updates. Connect with the VisionIAS community on social media to remain engaged with our informative and collaborative network.
Welcome Back !
Please login to your account for a personalized experience.
