India’s Central Bank Governor Advises Gradual Nationwide Rollout as CBDC Reaches 5M Users

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India’s central bank digital currency (CBDC) pilot has surpassed 5 million users, but Reserve Bank of India (RBI) Governor Shaktikanta Das has cautioned against a hasty nationwide rollout.

Speaking at a conference in Bengaluru on Monday, Das emphasized the need for a gradual approach.

The RBI launched pilots for both retail and wholesale CBDCs in late 2022, following the Finance Minister’s announcement in the 2022 budget speech.

By the end of 2023, the retail CBDC recorded over a million transactions in a single day, supported by participating banks.

Currently, 16 banks are involved in the retail CBDC pilot, although specific daily transaction figures were not disclosed by Das.

While the RBI has consistently maintained that it is not in a rush to fully implement a retail CBDC, Das’s latest remarks suggest a cautious stance.

“The actual introduction of CBDC can be phased in gradually,” he said.

“It’s crucial not to rush the system-wide rollout before gaining a comprehensive understanding of its impact on users, monetary policy, the financial system, and the broader economy.”

India's CBDC Has 5M Users, Can be Phased in Gradually: Central Bank Governor:

India's central bank Governor Shaktikanta Das has said that while their retail central bank digital currency (CBDC) pilot has over 5 million users, there should not be in any rush to roll out a… pic.twitter.com/Bue2MpcjXj

Since early 2023, the RBI has been exploring advanced features of the CBDC, including offline payments and programmability.

Das highlighted the programmability feature