Asserting that the newly-introduced central bank digital currency does not leave any trail with a bank, RBI Governor Shaktikanta Das on Wednesday said there is no need to create a “fear psychosis” in the minds of people over privacy concerns.
The pilot on the wholesale central bank digital currency (CBDC) has been very satisfactory, and the RBI is keen to pick up learnings from the ongoing pilot for the retail CBDC and implement them, Das told reporters at the post-policy press meet here.
Answering a query on possible raids by agencies like the Enforcement Directorate in the future because the CBDC does not possess the anonymity which the paper currency offers, Das said one must not be worried over privacy concerns.
“Let’s be clear, when you pay in currency notes to another person...Here also incidentally, let me say, you cannot find out because the information is not available to the bank. The bank does not know,” Das said.
“It (CBDC) goes from my mobile to somebody else’s mobile. So why should we create this fear psychosis?,” he asked. “The Income Tax department has certain limits for cash payments... (for) withdrawals beyond a certain limit, you have to give your PAN card number. The same rules will apply in the case of CBDC also because both are currency,” he noted. Many experts, including former RBI governor D Subbarao, have flagged concerns over the privacy aspect of CBDC.