The Reserve Bank of India (RBI) Plans to Launch Pilot of Central Bank Digital Currency (CBDC)
The Reserve Bank of India (RBI) is set to launch the pilot of its Central Bank Digital Currency (CBDC) for interbank borrowing or call money market transactions by October, according to Ajay Kumar Choudhary, Executive Director of the central bank. The pilot of the wholesale CBDC, known as the Digital Rupee-Wholesale (e-W), was initially launched on November 1, 2022, for the settlement of secondary market transactions in government securities. Choudhary stated that the introduction of the wholesale CBDC in the call market will take place either this month or next month. The RBI has selected nine banks for its pilot project for wholesale CBDC, and it has already rolled out a pilot for the retail version of the CBDC (e-R) on December 1, 2022.
Showcasing Digital Initiatives at the G20 Summit
The RBI is showcasing various digital initiatives in the financial sector at the exhibition pavilion during the G20 Summit. These initiatives include the Public Tech Platform (PTP) for Frictionless Credit, CBDC, UPI One World, RuPay On-The-Go, and Bharat Bill Payment System.
Hot Take
The RBI’s plans to launch the pilot of its Central Bank Digital Currency (CBDC) demonstrate its commitment to exploring digital innovations in the financial sector. As global discussions on CBDCs continue to gain momentum, this move positions India as an active participant in the digital currency landscape. By implementing a wholesale CBDC and a retail version, the RBI aims to enhance the efficiency, security, and accessibility of financial transactions. This development marks a significant step towards a digital future for the Indian economy, with potential implications for the broader adoption of CBDCs worldwide.
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