Central Bank Digital Currency (CBDC) is a desperate attempt of regulatory bodies across the world to retain centralised control over currency and its purchasing power. But it lacks few basic and core elements that are available in non-statutory digital currencies like Bitcoin. From decentralisation to anonymity, CBDC fails to meet the expectations of crypto stakeholders. That is why there are and there would be very few takers of CBDC or any other govt controlled crypto currency on a large scale.
Indian govt is notoriously infamous for ignoring crucial laws like privacy, data protection, cyber security etc on the one hand and excessive use of illegal and unconstitutional e-surveillance on the other hand. Also an environment of fear, uncertainty, excessive bureaucracy and regulations, etc has been created in India. For instance, for a petty sum of Rs. 2000, Indian pre-paid instruments (PPI) holders are required to share their PAN Number with companies like Amazon. This crosses all levels of reasonableness and sanity as a privacy loving person would prefer to forgo the amount instead of meeting this absurd and harsh condition of Reserve Bank of India (RBI), if any.
The real risk with govt controlled CBDC around the world would be total lack of control over your own money. For instance, if a pre-paid gift card holders cannot use her own balance in a Amazon Pay wallet without unnecessary and harsh KYC, it is a really risky proposition to put your cash equivalent money in any form of digital payments in India. If digital payments are so glitchy and risky, think about CBDC.
RBI has openly shown its hostile attitude towards crypto currencies both publicly and before the Supreme Court of India. RBI would not settle for anything below complete control over CBDC through centralisation, lack of privacy and missing anonymity. Money once locked with any vendor or company would be next to impossible to recover unless there are Online Dispute Resolution (ODR) Portals like ODR India. Just use the ODR Clause and your legal rights regarding CBDC and digital currencies in India would be secured by ODR India Portal.
Lack of effective and robust cyber security infrastructure and cyber crime fighting capabilities in India would also add complications for CBDC. India is a sitting duck in cyber security area and cyber crimes in India have increased significantly. Law enforcement agencies are incapable of handling sophisticated cyber crimes and cyber attacks in India and that is why there is hardly any conviction in cyber crimes cases in India.
There are many more technological and legal issues that would arise once CBDC is launched for general public in India. The all is well attitude of India govt would prove fatal for not only CBDC but also Indian critical infrastructure very soon. We at Perry4Law Organisation (P4LO) would help global stakeholders in this regard and any stakeholders may contact us to get best techno legal help in the world.