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Report: India Cenbank May Launch Digital Currency Pilot Next Year

cryptoknowmics.com 18 November 2021 06:20, UTC

According to a local newspaper, a top central bank officer suggested at the State Bank of India's Banking and Economic Conclave that the Reserve Bank of India's digital currency might see a test launch in the first quarter of the next fiscal year.

"I think somewhere; it was said that at least by the first quarter of next year, a pilot could be launched. So we are bullish on that," the Business Standard newspaper quoted P. Vasudevan, chief general manager at the Department of Payment & Settlement of the RBI as having said.

Central bank digital currencies, or (CBDCs), are digital or virtual currencies that are essentially digital versions of fiat currencies, such as the rupee in India.

The central bank governor had previously stated that a soft launch of the CBDC may be expected by December, but the RBI has yet to commit to a specific date.

"We are on the job, and we are looking into the various issues and nuances related to CBDC. It's not a simple thing to just say that CBDC can be a habit from tomorrow on," Vasudevan said, adding that a CBDC could have a useful role depending on how it is implemented, and there should be no hurry to launch it.

The RBI, according to Vasudevan, is looking into several concerns, including whether the CBDC should focus on wholesale or retail, the validation procedure, and other issues such as distribution routes.

"The central bank is also looking into whether middlemen can be eliminated, and, more critically, whether technology can be decentralized or semi-centralized," the RBI CGM shared.

The Reserve Bank of India has often expressed worry about cryptocurrencies being a threat to macroeconomic and financial stability.

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