The governor of the Asian country’s central bank revealed that its CBDC testing could begin this year.
The Reserve Bank of India (RBI) may launch its first central bank digital currency (CBDC)
testing programs in December, Governor Shaktikanta Das told CNBC.
The RBI is studying various aspects of a digital currency, including its security, its impact on India’s financial sector and how it would affect monetary policy and currency in circulation, according to Das.
As DiarioBitcoin has rightly recounted, many central banks, including those in China, Europe and the UK, are exploring digital currencies that they would issue. Already, the Bahamas has its own, which is considered the world’s first CBDC. In fact, a study showed that 83 countries are exploring CBDCs but only 5 have them operational and all are in the Caribbean
It’s worth clarifying that CBDCs are the same as legal tender, only in digital form. They are essentially the online version of their respective fiat currencies. In India’s case, it would be the digital rupee.
“We are being extremely careful about it because it is a completely new product, not just for RBI, but globally,”
Das told CNBC’s Tanvir Gill in a pre-recorded interview on Thursday.
The RBI is studying various aspects of a digital currency, including its security, impact on India’s financial sector and how it would affect monetary policy and currency in circulation, according to the governor.
refers to a digital database that allows multiple participants to access, share and record transactions simultaneously. A centralized ledger means that the database is owned and operated by a single entity, in this case, the central bank.
“I think by the end of the year, we should be able, maybe we would be in a position, to start our first tests,”
Das told CNBC.
His deputy, T Rabi Shankar, said last month that the central bank was working toward a “phased implementation strategy” for a digital currency.
Predecessor: the e-RUPI
It’s worth noting that some of this had already been advanced. DailyBitco
in told on August 2 about the launch of the e-RUPI, a kind of predecessor of the CBDC.
This would be the first step towards having a digital currency in the country, Prime Minister Narendra Modi said. It is precisely a digital payment system based on electronic coupons. The platform, which was developed by the National Payments Corporation of India (NPCI), the Department of Financial Services, the Ministry of Health and Family Welfare and the National Health Authority, will be a payment system for specific people and purposes.
The project has been years in the making. As early as 2018, a state currency was being evaluated in India.
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