India’s central bank plans 'graded approach' to digital currency, News 18 says

Central Banks • May 29, 2022, 6:23AM EDT
The Block

The Reserve Bank of India (RBI) said in its annual report released on Friday that it was taking a “graded approach” toward the introduction of a Central Bank Digital Currency, News 18 reported.

“The Reserve Bank is engaged in the introduction of a central bank digital currency in India. The design of CBDC needs to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems,’’ it said in the Annual Report on the Working of the Reserve Bank of India 2022.

“The Reserve Bank proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of Proof of Concept, pilots and the launch,” The RBI said in the report. “Accordingly, the appropriate design elements of CBDCs that could be implemented with little, or no disruption are under examination,” the report added.

Indian Finance Minister Nirmala Sitharaman announced in her budget speech earlier this year that the RBI planned to issue a digital rupee, according to Bitcoin.com.