A number of commercial banks will participate in the project with RBI noting that each financial institution will test the CBDC with at least 10,000 to 50,000 of their customers, according to reports.
The Reserve Bank of India expects the digital rupee would “pre-empt the need for settlement guarantee infrastructure or for collateral to mitigate risk.”
The world is facing a manpower crunch of developers knowledgeable in the blockchain space, with India working to address the issue by offering educational courses on the nascent technology.
One of the reasons the RBI explores the possibilities of a CBDC is its potential to improve cross-border payments while still promoting financial inclusion and protecting the “common man.”
The adoption of CBDCs in India will be conducted in phases on FY 2022-2023, beginning with wholesale businesses, as the Reserve Bank of India mulls the digital rupees' anonymity level.
Ajay Kumar Choudhary stated that the RBI would leverage the Union Budget 2022-23 that gives legal backing to the CBDC to implement it in a phased manner for wholesale and retail segments.
T. Rabi Sankar's statement echoes the RBI's revelation in its annual report released earlier this month, where it said it would follow a "graded approach" to introduce the digital rupee.
In its annual report published recently, the Reserve Bank of India proposed a three-stage "graded approach" to introduce a central bank digital currency, including proof-of-concept, pilot, and launch.
BSV blockchain will be at the center of the first BSV Global Blockchain Convention. The three-day event will be held in Dubai from May 24 to 26 at the Grand Hyatt Hotel.
The digital rupee will be launched on April 1, while the Indian government proposes a 30% tax on digital currency sales and a 1% tax on digital currency transactions.
A basic form of a digital rupee would provide a safe, robust, and convenient alternative to cash in liquidity and scalability, the Reserve Bank of India noted in its report.