India’s Digital Rupee Pilot Onboards 50,000 Users, RBI ‘In No Hurry’

The Reserve Bank of India (RBI) intends to proceed with central bank digital currency (CBDC) testing ‘slowly.’ This is despite the fact that the country launched its CBDC pilot a few months ago. The digital rupee pilot currently has 50,000 users and 5,000 merchants, according to a local media report.

Speaking at a press conference, RBI deputy governor Rabi Sankar announced the milestones and revealed that the government intends for the CBDC trial to go smoothly and has targets in place for the number of users and merchants. Sankar added that the government does not want to proceed with CBDC developments without being fully aware of the possible implications.

“We want the process to happen, but we want the process to happen gradually and slowly. We are in no hurry to make something happen so quickly,” Sankar stated.

Data from an official digital rupee application by the ICICI Bank shows that the pilot program is full and is not taking any more users.

Sankar revealed that since its December 1, 2022 launch, the program has recorded 770,000 transactions across eight banks. The pilot program is currently being conducted in five cities with an additional nine expected to be added soon. He added that five more banks will join the project in the future.

The Indian government revealed plans to develop a digital rupee early last year, stating that it would be a huge boost for the economy. The country’s central bank launched a wholesale CBDC in November, a month before the launch of its retail CBDC. Aiming for as little disruption to the country’s conventional financial system, the bank proposed a three-step graded approach in May 2022.

India’s decision to take a more tentative approach to CBDC development is in contrast to the swift rollout of China’s digital yuan, which according to some former central bank officials, has yet to gain high usage. At present, over 100 countries are pondering the use of central bank-issued digital currencies.