The RBI announced the first pilot in the wholesale segment of the Digital Rupee, in which nine banks will participate. Meanwhile, the BoT has delayed the implementation of its CBDC to work on its various stages and prevent technical problems.
The Reserve Bank of India (RBI) launches its first Digital Rupee pilot program, in which nine banks participate. The central bank said that might reduce transaction costs by avoiding a settlement guarantee infrastructure or collateral to mitigate risks.
The RBI recently announced the start of the first pilot in the wholesale segment of the Digital Rupee. State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC will participate.
The central bank explained that the use case for this pilot is the settlement of secondary market transactions in government securities. They said they expected the Digital Rupee to make the interbank market more efficient.
The regulatory institution pointed out it would focus on other wholesale transactions and cross-border payments, considering the results of the first pilot. They said they would implement the first Digital Rupee pilot program in retail segment locations close to user groups.
In October, the Reserve Bank of India explained various aspects and risks of its central bank digital currency (CBDC).
Other Countries Work on Their National CBDCs
The Geoeconomic Center of the Atlantic Council indicates that 105 countries, representing over 95% of global GDP, explore CBDCs. According to the Bank for International Settlements (BIS), the emergence of stablecoins and other cryptocurrencies has led 90% of central banks to do it.
Meanwhile, Jerome Powell, the chairman of the Fed, said the US might issue a CBDC in at least two years. Some legislators, including Christopher Waller, the governor of the Fed, do not consider a digital dollar necessary. The latter recently said he disagreed with the idea of the Fed creating a central bank digital currency.
Thailand Does Not Plan to Launch a CBDC Soon
The Bank of Thailand (BoT) has not rushed into creating and implementing a national CBDC. In August, the central bank announced that it planned to test the token over the next year.
However, the BoT decided to delay the implementation of the project to work on its various stages. They think this will reduce technical problem risks while creating and testing the central bank’s digital currency.
Sethaput Sutivarnaruput, the governor of the Central Bank of Thailand, said they need research work to continue. In other words, they must wait until the regulator enters the previously announced testing phase.
The regulatory institution seeks to allow the integration of digital baht into the local payment system. Sutivarnaruput said they expect to test the CBDC to pay for goods and services among 10,000 retail users.
Many cryptocurrency projects have emerged over the last few years, leading central banks worldwide to consider issuing their CBDCs. India and Thailand are only two examples of countries working on the digital version of their national fiat currencies.
By Alexander Salazar
