RBI to Trial CBDC With the Participation of Public-Sector Banks

RBI to Trial CBDC With the Participation of Public-Sector Banks
  • RBI asked four government-owned banks to participate in the CBDC trial.
  • Recently, the RBI declared that the CBDC will launch in 3 stages.

Ahead of the launch of the central bank digital currency (CBDC), India’s central bank, the Reserve Bank of India (RBI), has reportedly requested four government-owned banks to participate in the trial. According to reports, the RBI is currently in discussions with public sector banks such as the State Bank of India, Punjab National Bank, Union Bank of India, and Bank of Baroda regarding the Digital Currency Pilot. 

One of the bank officials stated: 

There is a pilot on CBDCs. The RBI may come with the launch this year. When it will exactly roll out the product and specifications is to be seen.

India’s Initiative to Launch CBDC 

Along with the public banks, RBI is also in talks with several fintech firms including U.S financial service company, FIS. Reportedly, the senior director of FIS, Julia Demidova expressed that, FIS has various engagements with the Reserve bank of India.

Julia furtherly added: 

Our connected ecosystem could be extended to the RBI to experiment with various CBDC options. Whether it is a wholesale or retail CBDC transaction, our technology can also be extended to commercial banks where they can test and tokenize central bank money in the form of digital regulated money.

FIS introduced the launch of CBDC Virtual Lab in August. The platform acts as the advisor to central banks, regarding CBDC-related issues like cross-border CBDC payments, offline and programmable payments, and financial inclusion. The platform has already organized several conferences on the topic of CBDC.

Recently, the RBI declared that the Indian CBDC will launch in three stages between 2022 and 2023. According to the Indian finance minister, Nirmala Sitharaman, the CBDC will create a massive impact on the nation’s economic development.

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