The Reserve Bank of India (RBI) is set to explore tokenisation of assets and government bonds as part of its wholesale Central Bank Digital Currency (CBDC) pilot project.
- CBDC is the digital form of a country’s fiat currency, which is regulated by its central bank.
About Tokenisation of Assets:
- Tokenisation is the process of issuing a digital representation of an asset on a (typically private) blockchain.
- The assets under tokenization can include real estate or art, financial assets like equities or bonds, nontangible assets like intellectual property, or even identity and data.
- Benefits:
- Faster transaction settlement
- Operational cost savings
- Democratization of access
- Enhanced transparency powered by smart contracts
- Cheaper and more nimble infrastructure
Ref: Source
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