India’s central bank digital currency (CBDC) pilot has surpassed 5 million users, but Reserve Bank of India (RBI) Governor Shaktikanta Das has cautioned against a hasty nationwide rollout.
Speaking at a conference in Bengaluru on Monday, Das emphasized the need for a gradual approach.
The RBI launched pilots for both retail and wholesale CBDCs in late 2022, following the Finance Minister’s announcement in the 2022 budget speech.
By the end of 2023, the retail CBDC recorded over a million transactions in a single day, supported by participating banks.
16 Banks Are Involved in India’s CBDC Pilot
Currently, 16 banks are involved in the retail CBDC pilot, although specific daily transaction figures were not disclosed by Das.
While the RBI has consistently maintained that it is not in a rush to fully implement a retail CBDC, Das’s latest remarks suggest a cautious stance.
“The actual introduction of CBDC can be phased in gradually,” he said.
“It’s crucial not to rush the system-wide rollout before gaining a comprehensive understanding of its impact on users, monetary policy, the financial system, and the broader economy.”
Since early 2023, the RBI has been exploring advanced features of the CBDC, including offline payments and programmability.
Das highlighted the programmability feature as a potential tool for financial inclusion, citing two recent pilot initiatives aimed at farmers.
These initiatives include programming funds for specific agricultural inputs and facilitating the generation of carbon credits, which could help establish the farmers’ identity and provide them with targeted financial support.
Looking ahead, Das revealed that additional use cases, such as anonymity and offline availability, are being considered for gradual implementation as part of the ongoing pilot program.
India’s stance on cryptocurrencies has been somewhat ambiguous.
The imposition of strict crypto taxes in 2022 and the crypto market downturn led Indian traders to switch to international exchanges, negatively impacting the local crypto industry.
Trading volumes shifted back to Indian exchanges after the ban on offshore entities, however.
India Trains Authorities on Crypto Forensics
Last year, India revealed that it has offered officials from various cybercrime and police departments training in cryptocurrency forensics and investigation during the financial year 2022–2023.
The training was aimed to equip law enforcement personnel with the necessary skills to combat cryptocurrency-related crimes.
Under the NCB, 141 officers received training specifically focused on darknet investigations, cryptocurrencies, and workshops on digital footprints, intelligence gathering from open sources, and social media analysis.
The training came as a survey conducted by blockchain intelligence company TRM Labs has revealed that 99% of law enforcement needs more training on crypto.
India has made it a priority to achieve global consensus on framing crypto policies as part of its G20 presidency in 2023.
The country successfully obtained agreement from all G20 members on global guidelines.
India faced criticism for pushing for global consensus without having its own legislation in place, however.
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