JPMorgan Executive Sees Big Future for India's CBDC Initiative

Naveen Mallela, global co-head of Onyx, JPMorgan’s blockchain and digital currency unit, highlighted the rapid adoption of blockchain technology in India, particularly after the 2022 launch of the central bank digital currency (CBDC), the e-rupee. He noted that CBDCs represent a significant advancement for Indian payments, positioning them as the next step in the evolution of the Unified Payments Interface (UPI), which has already gained global recognition. Mallela emphasized the goal of fully digitizing cash to enable payments without internet access, thereby promoting CBDC usage. He also supported the “Finternet” concept, a global ledger he believes will surpass previous digital initiatives. His remarks coincided with Reserve Bank of India (RBI) Governor Shaktikanta Das’ announcement of ongoing pilot tests for CBDCs with offline and programmable features. Das underscored the need for a gradual rollout based on pilot data to thoroughly evaluate the impact on users, monetary policy, the financial system, and the economy.