Digital rupee trial could start by December

Digital rupee trial could start by December

The Reserve Bank of India could launch its first digital currency testing program by December, Central Bank Governor Shaktikanta Das told CNBC.

Central banks including China, Europe and the UK They explore digital currencies that will be issued by them to commercial lenders or directly to the public.

They are called central bank digital currencies, or CBDC – fiat in digital form, and are essentially the online version of their respective fiat currencies. In the case of India, it would be the digital rupee.

“We’re extremely cautious about this because this is a brand new product, not just for RBI, but to the world,” Das told CNBC’s Tanveer Gill in a pre-recorded interview Thursday.

According to the governor, the RBI is studying various aspects of a digital currency, including its security, its impact on the Indian financial sector as well as its impact on monetary policy and the currency in circulation.

Das said the central bank is exploring alternatives between a centralized ledger or so-called distributed ledger (DLT) technology for digital currency..

DLT refers to a digital database that allows multiple participants to access, share, and record transactions simultaneously. A centralized ledger means that the database is owned and operated by a single entity – in this case, the central bank.

“I think by the end of the year we should be able – we will probably be able to – start our first try,” Das told CNBC.

His deputy, T Rabi Shankar, said last month that the central bank was working on a “phased implementation strategy” for a digital currency.

growing interest from central banks

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