The RBI which is the central bank of India has recently introduced a new concept known as the “plug-and-play” that is going to make cross border payments better. This system will also assist in enabling proper connection between numerous CBDCs of different central banks.
RBI Governor Shaktikanta Das emphasized that ensuring compatibility of these systems with each other would result in optimum benefit. This could help in accelerating the payment between nations and as well help to bring down the cost.
However, a challenge remains: Other countries may want to create their own system based on domestic circumstances for that nation. In this regard, Das was offering a structure that is highly scalable and will also pay respect to each country’s sovereignty.
India has already started implementing this idea and they expect it will be of great help to many countries. Adding to that, Das mentioned that for real improvement, CBDC systems should be interconnected. Also, conventional payment systems from various nations must also be able to interface with CBDCs.
India assumed the G20 presidency in December 2022.It has also intended to introduce new rules on digital assets which are expected to be released later in the year.
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