India's first step towards digital currency begins
RBI has rolled out the digital rupee, the Central Bank Digital Currency, as part of its first pilot test programme to review and improve the currency’s functionality
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Mumbai: Launch of digital rupee on a pilot basis is being termed as the first step towards India's digital currency. Talking to Bizz Buzz, Pratik Gauri, Co-founder & CEO, 5ire says: "I appreciate the government's commitment to financial inclusion and amthrilled to see the introduction of Central Bank Digital Currency (CDBC) by the Reserve Bank of India (RBI)."
As the founder of a layer one blockchain unicorn that hopes to bridgethe gap between the physical and digital world, I applaud this firststep toward India's digital currency, he said. The RBI has rolled out the digital rupee, the CBDC on Monday as part of its first pilot test programme toreview and improve the currency's functionality.
The rollout of the CBDC has been one of the most sought-after developments since its announcement in the FY23 Union budget. The pilot announcement involves nine banks, including SBI, Bank of Baroda, HDFC Bank, Yes Bank, Kotak Mahindra Bank, and ICICI Bank, settling secondary market transactions in government securities, thereby reducing settlement risk and transaction costs.
Jaya Vaidhyanathan, CEO, BCT Digital, says: "RBI's commencement of thepilot of the digital rupee marks appreciable progress in the journey towards digital payments. While experts were wondering when India – the world's fifth largest economy – would start in this regard, the RBI as usual has not disappointed."
The initiative has started in the low volume, a high-value wholesale (interbank) segment from where learnings would be used to roll out reliable, built-to-scale retail payments, she added.
A successful pilot and by extension, a full rollout of the digital rupee is expected to boost the reach of payment and financial needs of a wider category of users while ensuring transparency and low operational cost, and in this regard, it is encouraging to witness the RBI's support for innovation in creating a world-class, future-ready digital ecosystem
"We encourage mass adoption of blockchain and crypto and wish greatsuccess to all such projects done by policymakers. India's digitally skilled talent potential for Web3 and favourable policies willencourage faster pace of growth in Web3 adoption in the future," a Binance spokesperson said.
The initiative has started in the low volume, a high-value wholesale (interbank) segment from where learnings would be used to roll outreliable, built-to-scale retail payments.
