India's central bank digital currency (CBDC) pilot has reached a significant milestone, surpassing 5 million users. However, Reserve Bank of India (RBI) Governor Shaktikanta Das has advised against a rushed nationwide rollout. Speaking at a conference in Bengaluru, Das emphasized the importance of adopting a gradual approach to the implementation of the CBDC.
16 Banks Are Involved in India’s CBDC Pilot
Currently, 16 banks are participating in the retail CBDC pilot program in India. While specific daily transaction figures were not disclosed by Das, it is clear that the RBI is taking a cautious stance towards the full-scale adoption of the digital currency. Das reiterated the need for a phased introduction of the CBDC to thoroughly understand its implications on users, monetary policy, financial systems, and the broader economy.
Since the launch of the CBDC pilots for both retail and wholesale sectors in late 2022, significant progress has been made. By the end of 2023, the retail CBDC recorded over a million transactions in a single day, demonstrating the growing interest and usage of the digital currency.
Das highlighted the importance of ensuring a comprehensive understanding of the CBDC's impact before proceeding with a nationwide rollout. He emphasized the need to carefully evaluate the implications on various aspects of the economy before scaling up the implementation.
crypto-forensics">India Trains Authorities on crypto Forensics
In addition to the progress in the CBDC pilot, India has been actively training law enforcement officials in cryptocurrency forensics and investigation. The training sessions aimed to equip officers with the necessary skills to combat cryptocurrency-related crimes effectively.
During the financial year 2022–2023, around 141 officers received specialized training on darknet investigations, cryptocurrencies, and techniques for gathering intelligence from digital footprints and social media analysis. This initiative was part of India's broader strategy to enhance its capabilities in dealing with crypto-related crimes.
Furthermore, India's efforts to achieve global consensus on crypto regulations have been evident. As part of its G20 presidency in 2023, India successfully secured agreement from all G20 members on global guidelines for cryptocurrency regulations. Despite facing criticism for urging global consensus without having its own legislation in place, India's proactive approach to shaping crypto policies on a global scale has been notable.
As India continues to navigate the evolving landscape of digital currencies and blockchain technologies, the cautious approach taken by the RBI in the CBDC rollout reflects a deliberate and strategic mindset towards embracing innovation while prioritizing regulatory clarity and economic stability.
