While speaking with CNBC, the governor of India’s central bank, Shaktikanta Das, revealed that the Reserve Bank of India (RBI) may launch its first digital currency trial programs by December.
Even though other countries around the world have been exploring their own central bank digital currencies (CBDCs), the RBI is being careful with the prospects of a potential digital rupee, according to the governor.
Das explained that issues like monetary policy control are high on the firm’s agenda and the central bank is focused on examining the potential impact a digital rupee would have on India’s financial sector.
The RBI is also seriously considering the advantages of utilizing either a centralized or decentralized ledger for its proposed CBDC.
While speaking about a likely timeline for the next phase of the project, Das said:
I think by the end of the year, we should be able to […] be in a position, perhaps, to start our first trials.
The governor’s remarks are in line with recent statements from other central bank officials concerning the development of a digital rupee.
China continues to lead the way in the CBDC race with multiple pilot programs to encourage the adoption of its digital Yuan.