India CBDC Surges To 5 Million Users as RBI Adopts a Cautious Rollout Strategy
NAIROBI (CoinChapter.com) — India continues its cautious approach to launching a central bank digital currency (CBDC). The Reserve Bank of India (RBI) reported that its CBDC pilots have reached 5 million retail users as of August, according to Governor Shri Shaktikanta Das.
Speaking at the RBI Global Conference on Digital Public Infrastructure, Das stressed the need for a careful rollout, emphasizing the importance of understanding the CBDC’s impact on the financial system and economy.
The digital rupee pilots, launched in late 2022, focus on retail and wholesale segments. The initial emphasis was on payments. Currently, the RBI is testing offline and programmable functionalities. Das reiterated that India should avoid rushing into a full-scale CBDC implementation.
Instead, the RBI governor advocated a phased approach informed by pilot data.
RBI Governor Advocates Caution in Digital Currency Rollout
At the conference, Das emphasized that India should not hasten the implementation of a system-wide India CBDC. He highlighted the necessity of understanding its potential effects on users, monetary policy, and the broader financial ecosystem.
Das mentioned that data from ongoing pilots would play a crucial role in shaping the final implementation strategy.
Furthermore, Das pointed out that India’s central bank’s digital currency could enhance payment systems, particularly for domestic and cross-border transactions. He noted programmability as a key feature that could ensure targeted delivery of funds, especially in sectors like agriculture.
The RBI plans to introduce features such as anonymity and offline capabilities gradually.
India’s Crypto Regulation Unclear as India CBDC Progresses
While India advances with its CBDC, the regulatory environment for cryptocurrencies remains unclear. Despite some local authorities allowing global exchanges like Binance to operate, the Indian government has not moved forward with regulating crypto transactions.
In early August, Pankaj Chaudhary, Minister of State in India’s Ministry of Finance, stated that the government has no immediate plans to regulate cryptocurrency sales and purchases. This cautious approach mirrors India’s strategy with the CBDC, which involves careful evaluation of digital assets.
Meanwhile, traders continue to lament the lack of clarity in Indian crypto regulations and the massive taxation of crypto transactions.
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