India’s Central Bank Digital Currency (CBDC) pilot has surpassed 5 million users, but Reserve Bank of India (RBI) Governor Shaktikanta Das has advised against a rushed nationwide rollout. Speaking at a conference in Bengaluru, Das emphasized the importance of a cautious, gradual approach.
The RBI began testing both retail and wholesale CBDCs in late 2022. By the end of 2023, the retail CBDC achieved over a million transactions in a single day, supported by 16 participating banks. Das stressed the need to thoroughly understand the CBDC’s impact on users, monetary policy, the financial system, and the broader economy before a widespread rollout.
Since early 2023, the RBI has been exploring advanced CBDC features, including offline payments and programmability. Das highlighted the potential of programmability to enhance financial inclusion, citing pilot initiatives aimed at farmers.
India’s approach to cryptocurrencies has been cautious. Strict crypto taxes imposed in 2022 and a market downturn led Indian traders to switch to international exchanges. However, trading volumes returned to Indian exchanges after a ban on offshore entities.
In 2022–2023, India trained 141 law enforcement officers in cryptocurrency forensics and digital intelligence gathering to combat crypto-related crimes. During its G20 presidency in 2023, India prioritized achieving global consensus on crypto regulations, successfully gaining agreement from all G20 members, despite criticism for lacking its crypto legislation.
Image Credit: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
