Important statement by Reserve Bank of India Governor on digital currency

Governor of the Reserve Bank of India reported 5 million users in the CBDC pilot project and stressed the importance of a gradual rollout of the new system.

Bank chief Shaktikanta Das said the country's retail central bank digital currency (CBDC) pilot had reached more than 5 million users, but noted that system-wide rollout of the CBDC should not be rushed. Das stressed the importance of thoroughly understanding the impact of CBDC on users and the economy before moving to full-scale implementation of the system. He also noted that new use cases and features will be introduced gradually.

When did the pilot project start?

The pilot project was launched in late 2022 and has since been supported by 16 banks. However, no information on daily transaction volume was provided. Das did not give a specific date for the full implementation of the CBDC and indicated the possibility of a gradual transition. He emphasized the importance of gradually implementing CBDC throughout the system and stressed the need for a comprehensive understanding of the impact on users, monetary policy, the financial system and the economy during the implementation process. He also shared that various functions of CBDC are being tested and some new use cases will be introduced gradually.

CBDC Could Increase Financial Inclusion

In particular, the programmable feature of CBDC has the potential to increase financial inclusion. Das said two use cases have been tested for farmers, facilitating remittances for purposes such as purchasing agricultural inputs. Among the features being used are verifying the identity of farmers and supporting the production of carbon credits.

It is known that many countries around the world are taking steps to launch their own CBDCs. India’s strategy for implementing CBDC is evolving cautiously, keeping in mind the needs of the financial system and users. The Reserve Bank will continue to gradually scale up the process to fully assess the potential impact of the system and test its various features.

Author's opinion. 2022 is the year of launch of the test program. And what do we have in EU? Oh, we're doing great. I wrote the other day articleAt the end of 2024, bankers are going to find out whether a digital euro is needed. What else can I add? Apparently, the guys in China, India and BRICS are more agile…

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