India's E-Rupee Pilot Surpasses 5 Million Users, Aims for 1 Million Daily Transactions by Year's End
August 27, 2024Das stated that the introduction of a system-wide CBDC should be gradual, taking into account its effects on users, monetary policy, and the broader economy.
Since early 2023, the Reserve Bank of India (RBI) has been investigating features such as programmability and offline payments for the CBDC.
The e-rupee pilot, launched in late 2022, encompasses both retail and wholesale segments and has introduced innovations like offline payments and programmability.
India is cautiously exploring the implementation of a central bank digital currency (CBDC), with Central Bank Governor Shri Shaktikanta Das emphasizing a careful approach to its deployment.
Governor Das highlighted that programmable CBDCs could enhance financial inclusion, particularly for vulnerable populations like tenant farmers, by helping them establish identities and access agricultural credit.
As of August 2023, India's retail CBDC pilot has surpassed 5 million users, with participation from 16 banks, indicating significant progress.
Despite reaching 1 million retail transactions by late June, the adoption of the e-rupee has been slow, prompting the RBI to encourage banks to increase daily transactions to 1 million by the end of 2023.
By the end of 2023, the retail CBDC is expected to record over a million transactions in a single day, aided by the participating banks.
The RBI is also exploring the international implications of the e-rupee, aiming to align with global CBDC trends and reduce reliance on the U.S. dollar in trade.
Collaboration with international bodies like the Bank for International Settlements (BIS) is deemed essential for establishing standards for cross-border CBDC transactions.
Das emphasized that data generated from pilot programs will inform a gradual introduction of the CBDC, ensuring a measured approach.
Currently, India's regulatory framework for cryptocurrencies remains unclear, with the government not planning to regulate the sales and purchases of digital assets.
Summary based on 4 sources
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Sources
CoinDesk • Aug 26, 2024
India's CBDC Has 5M Users, Can be Phased in Gradually: Central Bank GovernorCointelegraph • Aug 26, 2024
India amasses 5M central bank digital currency usersInsideBitcoins.com • Aug 26, 2024
India's CBDC Pilot Reaches 5 Million Users Amid Cautious RolloutLive Bitcoin News • Aug 27, 2024
India’s CBDC Program Has Now Surpassed 5 Million Users | Live Bitcoin News