Digital Rupee Attracts 50,000 Users, India’s Central Bank Says

Semilore Faleti

2 years ago

3 mins read

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India’s central bank, the Reserve Bank of India (RBI), has announced that 50,000 users have adopted the nation’s central bank digital currency (CBDC), the digital rupee.

In a press conference on Wednesday, RBI’s Deputy Governor Rabi Sankar stated that this development represented the first milestone in its CBDC’s project testing phase. In addition to the 50,000 users, it was also revealed that 5,000 merchants across India currently accept the digital rupee as payment for goods and services.

The RBI launched the wholesale digital rupee pilot on November 1, 2022. Exactly a month later, India’s apex bank began the first retail digital rupee pilot starting with eight banks in four Indian cities, namely Mumbai, New Delhi, Bengaluru and Bhubaneswar.

Since then, a total of 770,000 digital rupee transactions have been recorded across all participating banks. According to Deputy Governor Sankar, five more banks and eight additional cities are set to join the pilot in a short time.

India To Cautiously Introduce The Digital Rupee

Sankar also expressed RBI’s readiness to carefully implement the digital rupee to avoid any severe financial fallout. He said, “We want the process to happen, but we want the process to happen gradually and slowly. We are in no hurry to make something happen so quickly”.

Currently, the digital rupee pilot program is full, with the RBI not accepting any new users for now. However, it is expected that there will be new slots available in the next few months.

India is just one of many countries exploring the introduction of a central bank digital currency (CBDC) to their economy following the emergence of blockchain technology in the last decade.

According to data from the Atlantic Council CBDC tracker, there are currently 114 countries involved in the discourse around CBDCs. Around 60 of these countries are in the advanced exploration stage, while 11 nations have successfully adopted a CDBC. Examples of countries using a CBDC include China (Digital Yuan), Jamaica (Jam-DEX), Nigeria (eNaira), etc.

India’s Central Bank Still Not Convinced About Cryptocurrencies

While the Reserve Bank of India shows much receptiveness towards the idea of CBDC, the Indian apex bank maintains its negative stance on the use of cryptocurrencies. Shaktikanta Das, RBI Governor, has continuously recommended the complete ban of cryptocurrency over time.

Last month, he reemphasized this position at a banking summit in Mumbai, stating that crypto assets had no underlying value. He also added that adopting cryptocurrency will weaken the RBI’s authority and lead to the “dollarization of the economy”.

In other news, the crypto market is experiencing a general bearish trend, with many assets recording losses over the last few days. According to data by CoinMarketCap, BTC is down by 6.69% in the last week, while ETH is having it worse, losing 8.12% of its market value over the same period.

Current Total Crypto Market Cap Valued At $975.337 Billion | Source: TOTAL Chart on TradingView.com.

During this time, other major cryptocurrencies such as XRP, DOGE, and ADA have also experienced losses to the tune of 7.08%, 14.99%, and 8.43%, respectively. For now, it remains unknown how long the crypto market will keep sliding. However, the current bearish market state has been interpreted by many as merely a price correction, with another breakout set to occur in the coming weeks.

Featured Image: Hindustan Times, Chart from TradingView.

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

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Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets.

Outside his work, Semilore possesses other passions like all individuals. He is a big music fan with an interest in almost every genre. He can be described as a “music nomad” always ready to listen to new artists and explore new trends.

Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination.

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In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

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