India aims to have one million users of its central bank digital currency (CBDC) within three months of launch, according to sources familiar with the matter cited by CoinDesk.
See related article: India’s largest retailer Reliance starts CBDCs sales
Fast facts
- The country’s central bank, the Reserve Bank of India (RBI), is prioritizing offline transactions as a key part of its rollout strategy, CoinDesk reported Thursday.
- The RBI is collaborating with several Indian banks to conduct pilot tests for the digital currency. Officials hope the CBDC will help reduce the country’s reliance on cash transactions.
- While India has historically been a cash-centric economy, the government has taken steps in recent years to accelerate the adoption of digital payments, including demonetization efforts and introducing several digital payment platforms. Launching a CBDC would mark a significant step towards a more digital financial system.
- India’s CBDC push is part of a broader trend of central banks worldwide exploring digital currencies to modernize and streamline their financial systems. China has been expanding its digital yuan pilots, while several other countries are also developing their own digital currencies.
- At least 114 countries are exploring CBDC developments, according to the Atlantic Council.
See related article: India, UAE to collaborate on cross-border central bank digital currencies