RBI On CBDC | NDTV Profit
#RBIPolicy: #CBDC programmability doesn’t militate against fungibility, says #RBI Deputy Governor T Rabi Shankar.
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00:00 The best way to think about it is when a family puts some currency notes in a package to be
00:06 used for, let's say groceries during the month.
00:10 Doesn't mean that the fungibility of the currency is lost, it's just that until that spending
00:15 happens it can be used for no other purpose.
00:18 I'm just giving you as an example to be able to think on what we mean by fungibility.
00:27 What we mean by programmability.
00:28 When you do programmability for a moment fungibility is on hold.
00:34 We have to realize that it's a facility that we are providing the currency.
00:39 Again by way of an example, let's suppose that a school has given some money to a student
00:44 who won a prize to buy books in a particular shop.
00:48 So the student can only use this money to buy books in that shop, that's intended.
00:54 Supposing the student goes and buys that book, he cannot use it for any other purpose.
00:59 As soon as the book is purchased and the currency goes to the bookshop owner, it again becomes
01:06 fungible.
01:07 So it's only for that period that fungibility is limited.
01:10 Supposing he doesn't spend, it goes back to the school, fungibility is restored.
01:14 So it is a way of controlling expenditure that you do not get unless it's digital and
01:19 that you do not get unless it's a token.
01:22 It's a facility that is there.
01:24 We'll use and the facility will typically be agreed by both, both the recipient as well
01:29 as the person who puts that condition.
01:31 So no, to give a very short answer, it doesn't militate against the programmability, doesn't
01:39 militate against fungibility.
01:41 It's only a specific use binding.
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