The Reserve Bank of India is working on a phased rollout of a Central Bank Digital Currency (CBDC) in a bid to lower the country’s dependence on cash.
According to RBI’s deputy governor Rabi Sankar, the CBDC will likely coexist with cash and other digital forms of payments. The institution is currently framing several considerations on the scope and legal framework of the proposed CBDC.
Sankar stressed the importance of having a consultation with stakeholders regarding the CBDC rollout.
“CBDC will be in the arsenal of most if not all central banks in the world. Setting this up will require careful calibration and a nuanced approach in implementation. Drawing board considerations and stakeholder consultations are important. However, conducting pilots in wholesale and retail segments may be a possibility in near future,” said Sankar.
