Indian Retail CBDCs Pilot to Reach Four Cities Via Four Banks
India’s Centralized Bank Digital Currency is going to enter the retail market tomorrow in four cities of the country
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This pilot project would be facilitated by four banks namely the State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank
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CBDCs, once become a part of the Indian economy, would open new realms for the flow of digital currencies including crypto
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Project would expand to 9 cities in the second round of testing to ensure the scalability of the project
After successfully completing the wholesale CBDC pilot project, RBI
Is all set to test out its retail version from 1st December 2022.
India’s Centralized Bank Digital Currency is going to enter the retail market tomorrow in four cities of the country. The Reserve Bank of India announced that the retail CBDCs would be tested in closed groups of users in specific cities before the testing limit would be exceeded.
Bangalore, Bhubaneswar, Delhi, and Mumbai are chosen by the RBI to commence the first round of testing retail CBDCs. This pilot project would be facilitated by four banks namely the State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank. As per the reports from RBI, Indian CBDCs would be legal tender and shared with the users using QR codes. The dominations of Indian bank notes, coins, and CBDCs would be the same.
How CBDCs Will Make a Difference?
CBDCs, once become a part of the Indian economy, would open new realms for the flow of digital currencies including crypto. This will also introduce an entire generation of Indians to blockchain technology and the mechanics of crypto tokenization. Indian retail CBDC project would expand to 9 cities in the second round of testing to ensure the scalability of the project.
CBDCs could also enable the centralized exchange to replace their liquidity in private USDTs with a government-backed digital currency that they can store in crypto wallets. If e-INR would be able to replace USDT because of its credibility, it would be able to become the next standard of operation in inter-exchange blockchain transactions.
Digital Indian Rupee was to be launched by the end of 2023 but with this pace of developments, we would soon be able to witness INR in its digital form in retail markets. The future of e-INR is bright and with the efficiency, RBI is moving forward with the project, indicating its significance and the government’s commitment to execute it.
Also, Read - India’s CBDC Pilot Project: A Threat or a Support System for UPI?
