Key Takeaway:
- Reserve Bank of India Governor emphasizes cautious approach to CBDC rollout
- CBDC pilot program in India reaches over 5 million users
- Importance of understanding impact on users, monetary policy, and financial system
Reserve Bank of India Governor Emphasizes Cautious Approach
During a conference in Bengaluru, Reserve Bank of India Governor Shaktikanta Das stressed the need for a measured approach to the full-scale rollout of India’s CBDC, also known as the e-rupee. He highlighted the importance of understanding the impact on users, monetary policy, and the broader financial system, stating that comprehensive insights from pilot data are crucial before wider implementation.
CBDC Pilot Program Reaches Over 5 Million Users
Launched in December 2022, the RBI’s CBDC pilot has surpassed the 5 million user mark, covering both retail and wholesale segments. The pilot program, involving 16 participating banks, has expanded beyond initial payment use cases to test offline and programmability functionalities. Governor Das pointed out that the programmability feature could play a crucial role in financial inclusion by ensuring targeted fund delivery.
Sluggish Adoption and Future Uncertainty
The e-rupee adoption has been slow, with only 1 million retail transactions reported by late June. The RBI had set a goal for banks to increase transactions to at least 1 million per day by late 2023 to test scalability, but this push has halted. The gap between incentivized metrics and actual user adoption raises doubts about the future of the digital currency initiative.
