India’s central banking, the Reserve Bank of India (RBI), reportedly asked four banks for piloting the central bank’s digital currency (CBDC), ahead of the public launch. Moneycontrol reported Monday that the Reserve Bank of India (RBI), India’s central banking institution, asked four banks from the public sector to test India’s central bank digital currency.
The RBI has requested that the pilot be run internally by the State Bank of India and Punjab National Banks, Union Bank of India and Bank of Baroda.
India’s CBDC pilot program
According to another official from the public sector bank, “There is a pilot program for CBDCs.” The launch could be assisted by the RBI this year. It remains to be seen when the product will actually be launched and its specifications.
According to reports, the Reserve Bank of India consults with several fintech companies regarding the digital rupee. FIS, a U.S.-based company, has been providing advice to central banks on CBDC matters, including offline and programmable payment, financial inclusion and cross-border CBDC payments.
Julia Demidova Told news outlets on wednesday
She said that it doesn’t matter if the transaction is wholesale or retail CBDC, our technology can be extended to commercial bankers where they can tokenize central banks money digitally.
India’s finance minister Nirmala Sitharaman announced during February’s federal budget 2022 presentation that the RBI would issue a CBDC this financial year.
The central bank stated in May that it would adopt an ” graded” approach to the launch of the digital rupee.
The RBI will regulate the digital rupee, which will be the digital equivalent of the physical rupee. This system will allow physical currency to be exchanged with digital currency,” Indian Prime Minister Narendra Modi explained .
The RBI advocates for an end to all cryptocurrency, including bitcoin and ether. T. Rabi Sankar , RBI Deputy Governor, stated earlier in the year that cryptocurrencies “have no underlying cash flows and “no intrinsic worth.” He also said that “banning cryptocurrency is perhaps India’s best option.”