Saturday, January 28, 2023

Reserve Bank Of India Plans First CBDC Trial By December 2021

The Reserve Bank of India (RBI) is planning to initiate the first central bank digital currency (CBDC) trial in the country, by the end of this year, says Shaktikanta Das, the Governor of RBI.

During an interview with CNBC on August 27, Das stated that “The central bank was being extremely careful in handling potential digital rupee.” 

It is to be noted that many other countries around the world are already exploring their CBDCs, presently. 

Das, in his interview, has mentioned that during this trial period, the RBI will analyze the digital rupee’s potential impact on the financial sector of the country. 

He further stated that at the initial phase of the project, the central bank studied the advantages of the centralized and decentralized ledger for the proposed CBDC.

While hinting about the next phase of the project, Das stated, “I think by the end of the year, we should be able to […] We would be in a position, perhaps to start our first trials.”

In July, Rabi Sankar, RBI deputy governor, stated that the central bank is planning to issue a digital rupee in different phases in the country. 

According to the report, several financial bodies around the world like Bank for International Settlement are promoting CBDCs as a counter to cryptocurrencies and private stablecoins.

Atlantic Council released a report in July, specifying that countries representing 90 percent of the entire global GDP are at different phases of CBDC exploration.

Among the major global economies, China is leading the race of CBDC, as the country has already initiated multiple pilot programs to stimulate the adoption of digital yuan. There are other Asian countries too, that have started their CBDC project.  

Another major discussion point in the CBDC space is of International cooperation with regional digital currency initiatives taking shape in places like Asia and the Caribbean.

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