The Reserve Bank of India is considering running a series of pilot programs for a proposed central bank digital currency (CBDC), Deputy Governor T. Rabi Sankar said.
- The deputy governor said in a speech Thursday that the central bank was weighing a "phased introduction" of a digital rupee to allow time for required legal changes to the country's foreign-exchange rules, according to a Bloomberg report.
- Sankar said a CBDC would reduce the use of cash and protect citizens from the volatility of cryptocurrencies.
- The RBI published a report in March highlighting the benefits of a CBDC for financial inclusion and drawbacks related to raising the cost of lending through commercial banks.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.