The Reserve Bank of India, the central bank of India, will soon start the launch of its CBDC, the Central Bank Digital Currency, which is intended for specific use cases.
According to the Reserve Bank of India, “multiple technological options will be tested, and the final architecture will be chosen based on the results.”
A report titled “Concept Note on Central Bank Digital Currency” was recently released by the central bank of India.
It was a 51-page document that discussed the goals, options, advantages, and risks of India’s Central Bank Digital Currency (CBDC) issuance.
India has long considered the advantages and disadvantages of establishing a CBDC.
The Reserve Bank of India has further clarified that although the digital rupee is “likely to be simpler, quicker, and less expensive than banknotes,” it “is substantially not different from banknotes.”
The CBDC will be based on various technological possibilities and use cases. These technological options need to be evaluated and based on a variety of findings.
According to reports, the final architecture has not yet been decided. The Central Bank is also “considering the various aspects of the available technological options.”
The introduction of the digital currency will take place gradually, with effective phase-out strategies. This implies that the launch will take place in a series of pilots, each of which will be followed by a final launch.
There will also be concurrent use cases that can be implemented with little to no disruption.