According to the central bank of India, the CBDC will primarily be used for “settling secondary market transactions in government securities.” This is partly because it would result in lower transaction costs.
Nine eminent banks in the nation have been selected by the central bank to participate in the trial initiative. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, State Bank of India, Bank of Baroda, Union Bank of India, Yes Bank, IDFC First Bank, and HSBC are the banks that have been chosen for the pilot program.
In a month, the retail version of the CBDC will be made available to a small number of customers and retailers in a small number of places.
Many people are unsure of India’s stance on cryptocurrency. Although the country formerly wanted to outlaw them, it would be hard to do so without the assistance of foreign regulators.
The bitcoin companies rejected the Reserve Bank of India’s antiquated strategy earlier this month as well. They made it plain, nevertheless, that CBDCs cannot take the role of digital assets. Despite the confusion and questionable legislation surrounding cryptocurrencies in India, the country’s user base is expanding.
