The governor of the Reserve Bank of India, Shaktikanta Das, said the bank could begin the trials for its digital rupees latest December this year. The trial program is proposed to measure the security of the digital currency and, ultimately, the impact it has on the economic network of the country.
The Approach of the bank on CBDC
In a recent interview with the governor of the Bank, Shaktikanta Das announced that the plans of the RBI to launch the trials of its digital currency before the year runs out. The mission is to examine the potential of the CBDC integration to the financial sector of India. The trial program, however, will analyze the security of the project.
Central Bank Digital Currency is a digital form of a country’s currency issued by the central bank of the country, just like the fiat currency. The monetary authority of the country will henceforth regulate it, and by implication, it is completely centralized. Till now, CBDCs still remain unexplored as employable financial instruments, and many financial experts could not yet attribute positive or negative implications it has on the monetary system.
On that, the governor of RBI asserted that the bank is examining the situation with critical attention. He also added that the central bank is fixed between employing a centralized ledger for the operation of the digital rupee of using the common distributed ledger technology (DLT). The DLT will enable different parties (or individuals) to access it while the centralized ledger created a restriction for all because of its single entity operation, making the Reserve bank of India the only entity to operate and control it.
The Enthusiasm of Indians and Cryptocurrencies
While we cannot conclude yet whether all Indians will support the launching of the country’s digital currency, we are quite certain that the citizens are keen on other digital assets like BTC and Ethereum.
As reported recently, the investments of Indians in the crypto market in 2021 compared to the previous year have increased by 200 times. More surprisingly, the citizens, who are known to be ardent lovers of Gold, have been switching loyalty to the cryptocurrencies markets.
Statistics revealed that the number of locals who are involved in crypto in the country is about 15 million. This figure surpassed the figure recorded in a well-developed country like the United Kingdom, with about 2.3 million people involved in the crypto market.
Even the country is having the leading involvement in the crypto market, the US, with over 23 million individuals involved, is not far from the figure recorded for India. As a matter of fact, the only country that has more index score of crypto adoption globally than India is Vietnam. It is worthy of mention that India was not even on the top 10 list in 2020.