India Could Launch CBDC Trials Later This Year, According to Central Bank Governor: Report

Deputy Governor T. Rabi Sankar said the central bank is studying matters related to security and the broader impact a CBDC would have on monetary policy.

Aug 27, 2021 at 9:34 a.m. UTC
Updated Aug 27, 2021 at 2:42 p.m. UTC

Trials for an Indian central bank digital currency (CBDC) could begin by December, Reserve Bank of India (RBI) Governor Shaktikanta Das said.

  • The central bank is studying matters related to security and the broader impact a CBDC would have on monetary policy, Das told CNBC Thursday.
  • “I think by the end of the year, we should be able to – we would be in a position, perhaps – to start our first trials,” he said.
  • Das said the RBI is exploring whether a digital rupee would harness blockchain technology or use a centralized ledger.
  • RBI Deputy Governor T. Rabi Sankar said in July that a digital rupee would reduce the use of cash and protect citizens from the volatility of cryptocurrency.
  • Among major economies, China is leading the way in the development of a CBDC. Its digital yuan, or eCNY, has been undergoing trials in various cities around the country for several months.
  • South Korea and Sweden appear the next most advanced in developing digital currency after China.

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Jamie Crawley is a CoinDesk news reporter based in London.