India’s Central Bank Proposes ‘Delete’ Feature for CBDC Transactions
The Reserve Bank of India (RBI) is proposing a new law that would enable users of its digital currency to erase any transactions from the ledger, while ensuring their anonymity, according to a source from CoinDesk.
The RBI is conducting both retail and wholesale digital currency pilots, with the retail pilot currently active in 15 cities and over 100,000 customers and 13 banks participating.
To implement this “delete” feature in the CBDC, the finance ministry of India may have to introduce new legislation in the parliament to provide legal support.
As per the source, efforts are underway to safeguard privacy in the CBDC system, and the authorities are seeking the support of the government to introduce a legal framework that permits customers to erase their transaction details and preserve their anonymity.
The issue of privacy in CBDCs has been a global concern, with several lawmakers and people expressing apprehension about possible surveillance threats. In the U.S., some legislators have put forward bills to prohibit CBDCs altogether, citing the same privacy concerns.
When asked if this move would be the initial attempt by any country to address CBDC privacy concerns, the source replied positively.
It is important to note that India has recently partnered with the United Arab Emirates to conduct joint pilot programs on CBDCs, and is actively exploring further collaborations with other countries in this area.
