The Reserve Bank of India is investigating tokenization of assets and government bonds as a possible feature of the ongoing wholesale Central Bank Digital Currency (CBDC) pilot. What Mr T Rabi Sankar focused on is to examine the technology, not producing large quantities.
“The option of tokenization of assets, government bonds among others,” he said. But they will be experimented and we are not expecting volume of business for the reason that the idea is to just test the technology.
The pilot also seeks to ascertain from the shop side how the technology functions, the capacity of computers, and how people engage with it. Sankar pointed out that the actual transaction volumes have decreased significantly compared to the initial target of 1 million.
This, he noted, was in response to new technologies like AI and quantum computing that put heavy pressure on security and encryption systems to change, especially for adaptability. Despite the pressing candidate of job displacement Sankar presumes that banking will keep pace with tech evolution prompting the bankers to adjust to and accept AI.
Cyber security is still one of the top matters requiring changes made to technologies and laws to maintain the pace of technological development rate. “The situation has changed rather fast, the laws will be forced to follow the trend,” says Sankar.