RBI Governor Suggests Offline Initiatives to Drive Digital Rupee Adoption in Remote Areas

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By BitcoinWiki News

Key Takeaways:

  • RBI Governor Shaktikanta Das suggests using offline solutions to boost adoption of digital rupee
  • RBI will evaluate various offline solutions, including proximity and non-proximity-based options, in hilly, rural, and urban environments
  • Proposed to introduce offline functionality in CBDC-R to enable transactions in areas with poor or limited internet connectivity
  • Digital rupee system facilitates person-to-person (P2P) and person-to-merchant (P2M) transactions
  • Offline capabilities part of RBI’s efforts to enhance digital rupee’s usability and accessibility
  • Interview with Siddharth Sogani, CEO of Indian blockchain analytic firm Crebaco, on the purpose of CBDCs
  • RBI initiated a pilot of its retail CBDC in December 2022
  • RBI exploring tech solutions for privacy concerns of its CBDC
  • Development of CBDCs in both developing and advanced economies gaining momentum
  • Total of 11 countries have launched digital currency, 105 countries are exploring a national digital currency

India’s RBI Governor Suggests Offline Solutions to Boost Digital Rupee Uptake

Introduction

The Reserve Bank of India (RBI) Governor, Shaktikanta Das, has proposed using offline solutions to increase the adoption of the digital rupee in remote areas. This move aims to enhance the currency’s usability and accessibility.

Digital Rupee Features and Challenges

The digital rupee system currently supports person-to-person (P2P) and person-to-merchant (P2M) transactions. However, the RBI is exploring offline functionalities for the digital currency to address poor or limited internet connectivity in rural and hilly areas.

Initiatives and Developments

The concept of introducing offline capabilities for the digital rupee first arose in March 2023 and is part of the RBI’s ongoing efforts to enhance the currency’s functionality. The central bank initiated a pilot of its retail central bank digital currency (CBDC) in December 2022, achieving one million daily transactions by December 2023.

Global Context and Financial Inclusion

The development of CBDCs has gained momentum worldwide, with 11 countries already launching digital currencies. The increased focus on CBDCs is primarily driven by goals related to financial inclusion, monetary system monitoring, and reduced cash usage. The RBI’s efforts align with the broader trend of exploring and implementing digital currencies across the globe.

Conclusion

The push for digital currencies, including the digital rupee in India, reflects a global trend towards greater adoption of CBDCs. By exploring offline solutions and enhancing digital currency functionalities, the RBI aims to support financial inclusion and provide accessible payment options in remote areas.

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