India is gearing up for a new era in finance with the introduction of the digital rupee, a Central Bank Digital Currency (CBDC). Retiring Reserve Bank of India (RBI) Governor Shaktikanta Das shared his vision of how this digital currency could reshape the country’s economy, where the CBDC plays a crucial role.
Das’s Push for Digital Rupee
During his farewell speech on December 10, Das spoke confidently about the power of the digital rupee to change the way people make payments. He noted that digital currency could eventually replace paper money, creating a more efficient system for transactions.
The RBI has already taken steps towards this goal by launching pilot projects, setting India apart as one of the pioneers in CBDC development.
Das took pride in the RBI’s pioneering role in CBDC development, stating, “RBI, among the central banks, is a pioneer.”
Unlike many global counterparts still experimenting with digital currencies, the RBI has already launched a pilot project for the digital rupee.
Careful Approach Towards CBDCs
Although Das is excited about the future of CBDCs, he also cautioned that their launch should be slow and steady. He explained that more research is needed before using a digital currency across the country.
Das thinks CBDCs could be very helpful, not only for payments in India but also for transactions between countries. The RBI is already expanding its payment platform, which works with countries like Sri Lanka, Bhutan, and Nepal.
New Leadership, New Directions
As India welcomes Sanjay Malhotra as its new RBI governor, markets are speculating on the future of monetary policy.
With inflation and economic growth as pressing concerns, Malhotra’s leadership will determine the next steps for the digital rupee and India’s financial evolution.
