The Reserve Bank of India (RBI), India’s central bank, is making progress in developing its central bank digital currency (CBDC) to function without internet access, according to RBI Governor Shaktikanta Das. Speaking at an event hosted by the Bank for International Settlements (BIS), Das emphasized the importance of offline functionality for the digital rupee, aiming to replicate cash transactions and increase accessibility. The RBI views its digital currency as a stable and controlled alternative to cryptocurrencies, which it perceives as potential threats to the country’s economic and financial stability. Pilot projects for the digital rupee have engaged over 1.3 million customers and 300,000 merchants, providing valuable data to evaluate its impact on consumer behavior and the financial system. Despite this, established mobile payment systems remain the preferred choice, indicating a gradual shift towards digital currencies. The RBI aims to position the CBDC as a secure alternative to cash and cryptocurrencies while addressing the challenges of internet dependency.
