The project will be the country's first digital currency trial initiative according to the 25th Governor of the Reserve Bank of India, Shaktikanta Das.
Rabi Sankar, deputy governor at the Reserve Bank of India, noted the need for India to keep pace with other major economies in financial innovation, especially with 86% of central banks researching CBDCs.
The governor of the State Bank of Pakistan believes that a state-back digital rupee can bring two-fold benefits to the country.
Finance Minister Nirmala Sitharaman assured that despite reports of government hostility against the industry, it will take a measured approach.
India’s digital currency industry faces an uncertain future, with a proposed draft bill threatening to impose a blanket ban on the entire industry.