The Reserve Bank of India governor, Shaktikanta Das, on Wednesday praised the trial launch of the central bank's digital currency, calling it a landmark achievement.
New Delhi: The Reserve Bank of India governor, Shaktikanta Das, on Wednesday praised the trial launch of the central bank’s digital currency, calling it a landmark achievement.
Yesterday, we launched the trial of the Central Bank Digital Currency (CBDC) project… It is a great achievement, without any doubt, as far as the functioning of the entire economy is concerned. “The Reserve Bank of India will be among the top central banks in the world which will launch digital currency,” the governor said.
We are adamant about launching CBDC in a full-fledged manner in the near future. The retail part of the CBDC trial is set to be launched later this month. CBDC will be launched in a full-scale manner because this is something that we have to proceed very carefully with,” he added.
On Tuesday, India’s central bank launched the trial version of the central bank digital currency.
“The settlement of secondary market transactions in government securities is the use case for this experimental project. The inter-bank market is anticipated to become more effective with the use of e-Rupee. “Going forward, other wholesale transactions and cross-border payments will be the focus of future pilots, based on the learnings from this pilot,” RBI said in a statement on Tuesday. Settlement in central bank money would lower transaction costs by eliminating the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk. The RBI has mentioned the names of nine banks that have been chosen to participate in the pilot project: State Bank of India (SBI), Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC.
During her 2022 budget speech in Parliament, Union finance minister Nirmala Sitharaman announced that digital currency will be a reality and that RBI will issue it using blockchain technology. She also stressed that it would make the Indian economy better.