India Central Bank: 50,000 People And 5,000 Merchants Are Now Using Digital Rupees

Key Points:

• The Reserve Bank of India (RBI) has disclosed that the central bank digital currency is already being used by 50,000 consumers and 5,000 businesses (CBDC).
• Last month, the RBI governor stated that bitcoin has no fundamental value, warning that it will undermine the RBI’s authority and lead to the dollarization of the economy.

The Reserve Bank of India (RBI) has disclosed that the central bank digital currency is currently being used by 50,000 consumers and 5,000 merchants in India (CBDC). Eight banks are presently processing digital rupee transactions, with five more expected to join the pilot soon, according to RBI Deputy Governor T. Rabi Sankar.

T. Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), said that the central bank’s digital currency pilot had accomplished its initial milestones. According to the RBI official, India’s central bank digital currency (CBDC) has 50,000 users and is accepted by 5,000 shops. The retail digital rupee trial, which began on December 1 of last year, is now taking place in five Indian cities, but the central bank intends to gradually expand to nine more. Eight banks have handled around 770,000 digital rupee transactions thus far. The RBI intends to add five additional banks to the trial program in the near future.

The central banker stressed that the Reserve Bank of India plans to proceed cautiously with the digital rupee program in order to avoid taking decisions without fully comprehending the possible consequences.

Reliance Retail, India’s largest retailer, revealed this week that it aims to accept digital rupee payments. The retailer has worked with ICICI Bank, Kotak Mahindra Bank, and fintech Innoviti Technologies to bring support for the central bank’s digital currency to its Freshpik gourmet store line across the country.

Meanwhile, India’s central bank has maintained its recommendation for a total ban on cryptocurrencies such as bitcoin and ether. RBI Governor Shaktikanta Das has warned that cryptocurrencies pose a threat to the country’s financial system and may precipitate the next financial crisis if not prohibited.

Furthermore, the RBI governor stated last month that “cryptocurrency has no underlying value,” warning that “it would undermine the RBI’s authority and lead to the dollarization of the economy.” Other RBI officials have warned that cryptocurrency might lead to the dollarization of a portion of the Indian economy, which would be “against the country’s sovereign interest.”

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