India could begin trials for a digital rupee by year-end, central bank governor says

August 30, 2021

The Reserve Bank of India will likely pilot its Central Bank Digital Currency (CBDC) or a digital rupee before the year-end, according to the governor Shaktikanta Das.

Das told CNBC that they are “extremely careful” though about how they begin the trial of India’s own CBDC. He said that the bank has not yet decided on whether the central bank will issue it directly to the users or it should go through the domestic banking system.

The news comes hot over heels of various global central banks, most notably, China’s central bank, The People’s Bank of China (PBoC), taking the lead in experimenting with retail CBDCs. According to a January survey by the Bank of International Settlements, majority of the central banks, nearly 86% of them, are currently experimenting with the CBDCs.

Asked about the Indian crypto industry in general, Das said that the nation’s apex bank is concerned about the “huge risks” the private cryptocurrency poses to financial stability. He said blockchain can be applied on its own in many applications regardless of private cryptocurrencies.

India is currently ranked as one of the fastest-growing countries in terms of crypto adoption in the world.

 

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