India Takes Slow Approach To CBDC Adoption With Limited Digital Rupee Pilot
Despite the fact that India has recently joined the race for a central bank digital currency (CBDC), the Indian government does not want to expedite its central bank digital currency (CBDC) trial.
Since the Reserve Bank of India (RBI) introduced the digital rupee trial last year, India’s newly announced CBDC pilot has gathered 50,000 customers and 5,000 merchants, according to a story published by a local news source called The Economic Times on February 8.
During a policy news conference held by the Reserve Bank of India (RBI), RBI deputy governor Rabi Sankar announced the first public milestones of India’s digital currency and emphasised that the government intends to continue with CBDC testing in the most streamlined manner feasible.
“We have our aims in terms of users as well as merchants,” the spokesperson said. “We will proceed carefully,” Sankar said, emphasising that the RBI doesn’t want to promote CBDC advances without having a full understanding of the possible consequences of such advancements. “We will go slowly.”
The most recent notification, when combined with information from an official digital rupee application, shows that the pilot programme is no longer accepting new participants. The data obtained from the digital rupee app developed by ICICI Bank indicates that India’s CBDC programme is now at capacity at the time of this writing; however, it is possible that more users may be allowed to participate in the experiment at a later time.
Since the beginning of the experiment on December 1, 2022, there have been a total of 770,000 transactions conducted using the digital rupee at eight different banks, as mentioned by Sankar. Currently, the experiment is being carried out in five locations, and there is a possibility that nine other cities may gradually join the pilot programme shortly. The official also said that the initiative would soon welcome participation from five other banks in the near future.
In November 2022, the RBI formally introduced wholesale CBDC, and one month later, they introduced retail CBDC. This information was previously published. The plans for the CBDC were first revealed by the Indian government at the beginning of 2022. At the time, they said that a digital rupee would provide a “huge boost” for the economy of India. Following this, the RBI recommended a three-step graded method for its implementation, with the goal of causing the existing financial system as little disturbance as possible.
The improvements in India’s CBDC happened many years after other nations, such as China, had begun an aggressive deployment of digital currency in April 2020. Some former employees of the central bank have said that the use of the digital yuan has been low despite the tremendous efforts that have been made to encourage the use of CBDCs.
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Filed under: Bitcoin - @ February 9, 2023 1:19 pm