India might launch digital rupee pilot programs in December

TL; DR Breakdown: The Indian central bank may begin testing the digital rupee in December.The RBI is “extremely careful” with the developmental processes, according to the governor. The central bank of India is considering launching pilot programs for a potential digital rupee, the nation’s legal tender, starting December 2021.  India is among the list of countries that began researching central-bank-issued digital currencies or CBDCs, following the transition from cash to digital payments amid the coronavirus pandemic.  RBI carefully studying digital rupee In accordance with the words of Shaktikanta Das, the governor of the Reserve Bank of India (RBI), the first set of tests for the digital rupee might be launched in December. “I think by the end of the year, we should be able to — we would be in a position, perhaps — to start our first trials,” the governor told CNBC in an interview on Thursday. The central bank is currently studying the impact the digital rupee would make regarding security, the circulation of the currency, monetary policy, as well as the country’s financial sector. “We are being extremely careful about it because it’s completely a new product, not just for RBI, but globally,” the governor added. RBI will also decide on whether the digital rupee will run on a centralized ledger or distributed ledger technology (DLT). Banks clings to CBDCs  Amid the pandemic, there was...