Reserve Bank of India to reportedly launch digital rupee pilot in November
Reserve Bank of India to reportedly launch digital rupee pilot in November.
The central bank of India will launch the digital rupee pilot for the wholesale segment on Nov. 1, the RBI reported on Oct. 31.
The pilot program will involve nine locally operating banks, including the biggest Indian bank, the State Bank of India. According to a report by Reuters, other banks in the pilot will also include Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC.
Unlike wholesale CBDCs, retail CBDCs are utilized by households and businesses, allowing them to make payments directly and store value via the digital version of a specific fiat currency, like the Indian rupee. According to the new report, the Reserve Bank of India plans to launch the digital rupee for the retail segment within a month in select locations.
India has been somewhat quick in launching a CBDC. Indian Finance Minister Nirmala Sitharaman announced the initial plans in February 2022, stating that a digital rupee would be a “big boost” for India’s economy. The RBI then offered a three-step graded approach for its rollout, aiming for little or no disruption to the traditional financial system.
The Indian government has been taking measures to make crypto less attractive for local investors including adopting a 30% tax on digital asset holding and transfer. the new crypto taxes had a negative impact on the country's crypto ecosystem forcing industry entrepreneurs to move to friendlier jurisdictions.