The Indian government is gearing up to accelerate its Central Bank Digital Currency (CBDC) project in the country. The Reserve Bank of India (RBI) digital currency (CBDC-R) architects aim to scale the user base of the digital rupee to one million users.
RBI, which aims to double the target announced in March, plans to reach one million users by July. The CBDC project is seen as a significant shift in India’s stance on digital currencies. The government is preparing to implement various strategies to promote the use of CBDC and provide broader access to financial services.
Sources said that since India is one of the world’s most populous countries, they hope to easily reach one million users. They added that the temporary timeline is three months. RBI is conducting both retail and wholesale CBDC pilots, and the retail CBDC pilot began on December 1, 2022. In the past four months, it has been observed that more than 100,000 customers have participated.
RBI Governor Shaktikanta Das said at the Group of 20 (G-20) meeting held in Bengaluru that India’s digital rupee has received significant interest. RBI aims to solve some challenges related to a retail CBDC by launching a Hackathon in 2023.
A digital currency system that facilitates offline transactions is seen as a way to increase financial inclusion in developing economies such as India. RBI hopes to conduct offline transactions by testing the use of wearable devices, cards, and smartphones.