New Delhi: It is no secret that the Reserve Bank of India (RBI) has increased its efforts to establish a central bank digital currency (CBDC), also known as a digital rupee, in the near future.
Shaktikanta Das, the governor of the central bank, has now stated that the pilot programme for the central bank’s digital currency might begin as early as December 2021. In an interview with CNBC, Das said, “The Reserve Bank of India may launch its first digital currency pilot programs by December.”
He also stated that the RBI is particularly cautious about the project because it is a whole new product ‘not only for the RBI, but internationally’. “I think by the end of the year, we should be able — potentially in a position — to start our first trials,” he was reported as adding.
What are central bank digital currencies, sometimes known as CBDCs?
CBDCs are essentially virtual currencies that are typically issued by the same authority that manages a country’s fiat currency. Simply said, CBDCs are digital equivalents of fiat currency.