The Growth of India’s CBDC Pilot: What You Need to Know
If you are interested in the latest developments in India’s Central Bank Digital Currency (CBDC) pilot, here is what you need to know:
The Retail and Wholesale CBDC Pilot Launch
India launched pilots for both retail and wholesale CBDCs towards the end of 2022, following an announcement in the 2022 budget speech by the Finance Minister.
The Success of the Retail CBDC
- By the end of 2023, the retail CBDC had recorded over a million transactions in a single day, with the support of participating banks.
The Involvement of 16 Banks in India’s CBDC Pilot
Currently, 16 banks are part of the retail CBDC pilot, although specific daily transaction figures were not disclosed.
While the RBI has maintained a gradual approach towards fully implementing a retail CBDC, Governor Shaktikanta Das’s recent remarks emphasize caution.
Das highlighted the need to phase in the actual introduction of CBDC gradually to gain a comprehensive understanding of its impact on various aspects.
The Development of Advanced Features
Since early 2023, the RBI has been exploring advanced features of the CBDC, including offline payments and programmability.
- Das emphasized the programmability feature as a potential tool for financial inclusion, citing recent pilot initiatives for farmers.
Looking ahead, additional use cases, such as anonymity and offline availability, are being considered for gradual implementation as part of the ongoing pilot program.
The Impact of India’s Crypto Policies
India’s stance on cryptocurrencies has been somewhat ambiguous, with strict crypto taxes in 2022 leading to Indian traders moving to international exchanges.
- Trading volumes shifted back to Indian exchanges after the ban on offshore entities.
India’s Focus on Crypto Forensics Training
Last year, India provided training in cryptocurrency forensics and investigation to officials from various cybercrime and police departments.
- The training aimed to equip law enforcement personnel with skills to combat cryptocurrency-related crimes.
A survey by blockchain intelligence company TRM Labs revealed that 99% of law enforcement officers require more training on crypto-related matters.
India has prioritized achieving global consensus on framing crypto policies as part of its G20 presidency in 2023, leading to agreements from all G20 members.
Hot Take: India’s CBDC Pilot and Crypto Forensics Training
If you are following India’s CBDC pilot progress and the country’s efforts to train authorities in crypto forensics, stay updated on the latest developments shaping the crypto landscape in India.
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