Reserve Bank of India (RBI) Governor Shaktikanta Das has provided an update on India's central bank digital currency (CBDC), revealing that it now has around 1.5 million users and over 300,000 merchants accepting payments in digital rupees.
India's central bank digital currency (CBDC) is gaining significant traction, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. At this year's Global Fintech Fest in Mumbai, Das provided an update on the progress of India's CBDC pilot.
Key highlights of India's CBDC pilot include:
1.5 Million Users: The CBDC pilot has been rolled out to approximately 1.46 million users.
Merchant Adoption: Over 300,000 merchants are currently accepting payments in CBDCs as of August 31.
Bank Participation: The CBDC pilot is being operated through 13 banks in 26 cities across India.
Interoperability: Full interoperability of the CBDC with UPI QR codes has been enabled, enhancing its usability.
RBI Deputy Governor T. Rabi Sankar had previously provided updates on the CBDC pilot's growth. In February, there were 50,000 users and 5,000 merchants using the digital rupee. By July, the user base had surged to 1.3 million, with 300,000 merchants accepting CBDC payments.
The RBI is aiming to achieve 1 million daily CBDC transactions by December, providing valuable data points for analysis. Additionally, RBI Executive Director Ajay Kumar Choudhary mentioned that the central bank is likely to launch a CBDC pilot for interbank borrowing or the call money market by October.
India's central bank is actively advancing its CBDC project, with plans to make it a viable alternative to cryptocurrencies. The e-rupee, as it's called, is expected to offer similar functionalities to cryptocurrencies while maintaining regulatory compliance and security.
The rapid adoption and acceptance of India's CBDC among users and merchants reflect the growing interest in digital currencies as an innovative form of payment and financial inclusion.
(Kevin Helms, Bitcoin News, 2023)