Shaktikanta Das, on his last day as head of the Central Bank of India, spoke about the results of his work and shared his vision for the future transformation of the economy with the help of the digital rupee.
Talking about progress in the development of central bank digital currency (CBDC), Das noted that many countries are stuck in the stage of experimentation and discussion. India was able to implement a test launch of CBDC to develop the country’s digital economy, reduce the costs of transactions with physical currency and ensure greater financial inclusion of users.
Das said that the digital rupee infrastructure is connected to UPI, a universal payment interface that allows digital rupee transactions using a mobile application. As of early 2024, India had about 4 million central bank digital currency holders and more than 300,000 CBDC acceptance points, according to the RBI.
“India is gradually preparing for a CBDC-based economy and RBI is one of the few central banks to have successfully launched a pilot project. I see great potential in CBDC as a digital currency that will replace traditional money and become the basis of future payment systems for both domestic and cross-border payments,” Das said.
The RBI governor added that India is exploring the possibility of using the digital rupee as the main instrument for cross-border settlements with Sri Lanka, Bhutan and Nepal. However, Das advised global financial market participants not to rush into systemic adoption of CBDC without a clear understanding of the technology’s potential impact on users and monetary policy.
Earlier, Shaktikanta Das said that a central bank digital currency could mitigate the uncertainty created by cryptocurrencies.
Source: Bits
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