09.12.2021

India to launch testing of national digital currency at the end of 2021

The Reserve Bank of India (RBI) plans to launch the first tests of the central bank digital currency (CBDC) by the end of this year, said bank governor Shaktikanta Das.

In an interview with CNBC, Das said that the central bank is closely scrutinizing various aspects of digital currencies, including their security and potential impact on India’s financial sector:

“We are very careful with this because this is a completely new product not only for RBI, but worldwide. RBI is studying various aspects of digital currency, including its security, the impact on the financial sector in India, and how it will affect monetary policy and currencies in circulation. “

Interest in CBDC has grown significantly in recent years due to the surge in distributed ledger technology adoption.

The central banks of China, Europe and the UK are actively working on the release of the CBDC. In July 2021, the European Central Bank announced the start of the research phase of the Digital Euro project. In November 2020, European Central Bank President Christine Lagarde noted that the ECB plans to introduce the digital euro by 2024.

As an emerging market, India is one of the fastest growing destinations in the cryptocurrency world. The adoption of cryptocurrency assets in India has grown rapidly over the past 12 months. However, crypto investors in India are under constant strain due to a potential ban on innovative assets.

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