India Hopes To Target 1 Million CBDC Users In The Next 3 Months
- Within three months after its introduction, India hopes to have one million users of its central bank digital currency (CBDC).
- The Reserve Bank of India, the country’s central bank, is emphasizing offline transactions as a major component of its rollout plan.
- The RBI is cooperating with numerous Indian banks to undertake digital currency pilot testing.
According to a CoinDesk story citing two persons familiar with the situation, India plans to introduce the digital rupee to one million users within three months via its ambitious retail central bank digital currency (CBDC) program.
While RBI officials officially indicated in March that they hoped to have 500,000 users by July, they are quietly hoping to treble that number.
The retail CBDC architects in India are aiming to reach one million digital rupee consumers.
The digital rupee has earned worldwide acclaim, with a recent G-20 summit praising its design. The retail CBDC trial, which started on December 1, 2022, is taking place in at least 15 Indian cities and includes over 13 banks.
“In fact, an eminent person from the international financial sector went to the extent of complementing the design of our CBDC, adding that the only thing he missed in the CBDC was the smell of new currency.”
One of the key issues that the RBI has is developing an offline version of the digital rupee. In 2023, the RBI launched a Hackathon to identify answers to some of the issues associated with a retail CBDC, such as enhancing scalability, boosting transactions per second, and permitting offline transactions.
Many suggestions have been offered, and the RBI is in discussions with private enterprises about potential solutions. Despite the government’s growing acceptance of cryptocurrency, the RBI remains skeptical of the “underlying worth” of crypto assets. According to one source, more than 50 recommendations were submitted to the RBI before the March 24 deadline to address the issue of offline transactions.
The RBI hopes to perform offline transactions by experimenting with wearables, cards (debit and credit), Bluetooth technologies, and a smartphone. Another major issue that the RBI is attempting to address is the potential of double-spending.
Banks are cautious about collaborating with cryptocurrency exchanges. The RBI has not established a timetable for launching a full-scale retail CBDC, but has previously said that it hopes to do so before the end of the year. Nonetheless, as the Union government works to improve investor safety programs, stakeholders anticipate a shift in the scenario in the next year.
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