The Deputy Governor of the Reserve Bank of India, in the person of Rabi Shankar, said earlier this month that the bank may release a CBDC model before the end of the year.
There is a progress in this regard as the Governor of RBI, namely Shaktikanta Das, commented in an interview last Friday that the bank may kickstart pilot-testing its digital rupees this December.
Just like some other central banks, Shaktikanta noted that the bank is being cautious about having the digital rupees. More like they are weighing its pros and cons on the national monetary policy.
According to the Governor, the reason for the current reservation is because of the novelty of the blockchain and the concept of central bank digital currency. Hence the reason the RBI is being “extremely careful” about it.
Because of the newness of CBDC, the Governor said that the bank is intensively researching the general impact of CBDC on the national finance and fiscal policies.
As part of the research, the Governor noted that the bank is still facing an indecision as regarding whether to adopt a distributed ledger or centralized one.
Nonetheless, he noted that the RBI has a favorable disposition towards creating the digital rupees despite its novelty. “I think by the end of the year, we should be able…to start our first trials,” the Governor remarked.