The Reserve Bank of India (RBI) is discussing the possibility of cross-border payments using the digital rupee with at least 18 countries. The Economic Times reports.<\/p>\n
The RBI Governor Shaktikanta Das emphasised the importance of external trade infrastructure for CBDC<\/a>. He estimates that by July the number of central bank digital currency users within the country should reach 1 million.<\/p>\n \u201cCross-border payments will become much faster, more transparent and cost-effective. This is another area that requires significant attention. We are in constant contact with other central banks that have introduced or are introducing CBDCs,\u201d he added.<\/p>\n<\/blockquote>\n According to the RBI’s report, since 2022 more than 18 countries have opened accounts in the digital rupee.<\/p>\n The RBI plans to use the new financial solution in payments for imports for countries that are facing difficulties sourcing from the United States due to a dollar shortage.<\/p>\n According to Das, India itself does not need the American currency. On the contrary, the introduction of CBDC will help the country preserve its dollar reserves.<\/p>\n During the period in 2013, when foreign institutional investors pulled funds out of India’s bonds and equities, causing the rupee to crash, India suddenly faced an external-sector crisis, and the RBI had to attract foreign investment by offering additional incentives. We did not want a repetition of that situation,\u201d the central bank governor added.<\/p>\n<\/blockquote>\n On 1 November 2022, the country started<\/a> trials of the wholesale version of CBDC. This version of the digital rupee was used in settlements for deals in government securities on the secondary market.<\/p>\n The testing of the retail version of CBDC with participation of individual merchants and consumers began<\/a> on 1 December. It involves eight banking institutions.<\/p>\n\n
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