India’s Central Bank to Launch CBDC Pilot Soon: Report
India’s central bank is set to begin the pilot launch of its digital rupee for specific use cases, according to a concept paper published Friday. The Central Bank has been exploring the advantages and disadvantages of its CBDC and is looking to implement it through multiple phases.
RBI Wants to General Raise Awareness Aboud CBDCs in India
The Reserve Bank of India (RBI) plans to initiate the pilot launch of its central bank digital currency (CBDC) soon and the digital rupee for specific use cases, the bank said in a concept paper. The RBI wants to examine the use cases of the digital rupee in a way that would not unsettle the country’s financial system.
India’s central bank has been investigating the pros and cons of an e-rupee for a while now and wants to implement the CBDC through several stages. The move comes months after the Indian government signaled its plans to roll out a digital rupee during the course of the financial year 2022.
“It is the responsibility of central bank to provide its citizens with a risk-free central bank digital money which will provide the users the same experience of dealing in currency in digital form, without any risks associated with private cryptocurrencies,” the RBI said.The Reserve Bank of India (RBI) said.
The central bank said the aim of the pilot launch is to raise awareness about CBDCs in general and the planned features of e-rupee. The concept note “explains the objectives, choices, benefits, and risks of issuing a CBDC in India. The note also seeks to explain Reserve Bank’s approach towards the introduction of the CBDC,” the RBI added.
The RBI also hinted at potential plans to launch both retail and wholesale e-rupee, noting certain advantages in both. A wholesale digital rupee could improve the efficiency and security of settlement systems, the bank said, while a retail version could provide Indian citizens with a safe digital payment method.
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India Joins Other Global Central Banks in the Race to Launch CBDC
India’s decision to commence the pilot launch of an e-rupee is the latest in a series of similar moves made by other global central banks.
In September, the White House unveiled its first-ever crypto regulatory framework. One section of the framework was dedicated to CBDCs, where the White House focused on the potential advantages of a digital dollar.
Also last month, the central bank of Hong Kong said it expects to launch a wholesale CBDC in the following 2 to 3 years. Retail CBDC is currently fully launched in several countries, including Nigeria, the Bahamas, and Jamaica, among others.
Does your local central bank plan to launch CBDCs in the future? Let us know in the comments below.