- RBI Governor Shaktikanta Das recently revealed that the Indian central bank is considering making its digital currency (CBDC) available offline.
- The move is seen as an effort to streamline transactions and mimic the offline availability of cash.
- This comes as India advances with its CBDC pilot in an effort to understand market dynamics.
In a significant development, the Reserve Bank of India (RBI) is considering making its Central Bank Digital Currency (CBDC) available offline. This move is seen as a proactive approach by the Indian government to support the unregulated crypto sector.
RBI Governor Advocates Offline CBDC
Shaktikanta Das, the RBI Governor, made this announcement at the Bank for International Settlements (BIS) event. He emphasized the importance of the offline availability of cash and stated that the authorities are working towards making CBDC transfers seamless, especially in situations where internet connectivity is not available. He further added that CBDC is a safer alternative compared to private digital currencies.
India’s CBDC Pilot: A Market Dynamics Study
The country recently expanded its digital currency pilot program, which has seen participation from over 1.3 million customers and 300,000 merchants. Despite the daily usage of CBDC in India reaching a notable 1 million transactions, Das stressed that instant mobile payments remain the preferred mode of transaction for most people. The primary motive behind the CBDC pilots is to observe changes in consumer behavior towards bank deposits and the need for increased transaction volumes to understand the broader economic impacts.
Conclusion
With the RBI considering making its CBDC available offline, it is clear that India is making significant strides in the crypto sector. This move is expected to streamline transactions and mimic the offline availability of cash, thereby providing a safer alternative to private digital currencies. As the country continues to advance with its CBDC pilot, it will be interesting to see how this development shapes the future of digital currencies in India.
