There is a lot to unpack about this new digital currency RBI is talking about. Deepak and Shray built up the discussion by pondering over successive questions. Deepak takes us through how cryptocurrencies currently work. This sets up the context to the current ways of handling digital currencies and we move on to discuss the RBI-backed digital currency - Central Bank Digital Currency (CBDC).

Key Points

• How CBDCs are not cryptocurrencies? And how are they different?
• Is CBDCs actually required or is it a response to the popularity of cryptocurrency? So basically, why now?
• Is the CBDC likely to be anonymous like cryptocurrencies?
• Can CBDCs be an alternative to the SWIFT system given how Russia has been isolated by the world right now?
• Impact of CBDC on Monetary and Fiscal policies?