See More

India Central Bank Considers Phased Digital Rupee Launch

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • RBI may launch a pilot for its digital rupee CBDC in a phases.
  • RBI Deputy governor believes that a CBDC could help India in its position as a leader in payments systems.
  • The pilot, should it launch, will focus on the wholesale and retail segments.
  • promo

The Reserve Bank of India may introduce a digital rupee central bank digital currency (CBDC) in a phased rollout, according to its deputy governor.

On July 22, Deputy governor T Rabi Sankar said that the possibility of a pilot test is possible in the near future, though he did not offer a specific time frame. The RBI is examining the details of the CBDC. For example, whether it should be a distributed or centralized ledger, and what form the issuance would take, among other things.

He believes that a CBDC could help India in its position as a leader in payments systems,

“Every idea has to wait for its time. Perhaps the time for CBDC is nigh. It would be RBI’s endeavour, as we move forward in the direction of India’s CBDC, to take the necessary steps which would reiterate the leadership position of India in payment systems.”

However, he does not think that design and implementation will “require careful calibration and a nuanced approach.” The pilot, should it launch, will focus on the wholesale and retail segments.

India has been noticeably mum on a CBDC. One of the fastest-growing economies in the world, India, stands to gain a lot from digitizing its economy. Neighbor and economic rival China already has a tremendous head start with its CBDC, and other countries have come to realize the benefits of a digital currency.

Will a digital rupee mean no private crypto?

India’s stance on the crypto market has been one filled with conflicting statements. Panels have gone back and forth on the legality of crypto, with several rumors saying that the country would criminalize crypto. At one point, the RBI ordered banks to stop facilitating transactions related to crypto, which the Supreme Court later overturned.

India is highly active in the crypto market, with its investors gladly taking to the asset class. The growth of exchanges and the arrival of Coinbase in the country also point to potential in the market. But none of this can transpire without clear regulation.

And clear regulation is what the government appears to be working towards at the moment. Finance Minister Nirmala Sitharaman has spoken of the crypto asset class before, most recently saying that regulation would be important. This is a turn from a previous statement where she said that cryptocurrencies were not legal tender.

But there will not be a word on crypto regulation until the monsoon session of parliament. Until then, Indian investors will have to sit tight and hope that the government introduces regulation that encourages innovation.

Top crypto platforms in the US | April 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Rahul-Nambiampurath.jpg
Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
READ FULL BIO
Sponsored
Sponsored