Amid India’s ambiguous stance on cryptocurrencies, RBI Governor Shaktikanta Das advocates for the development of the Digital Rupee. In a recent speech, he highlighted its benefits in international remittances and stability compared to Bitcoin and Ethereum.

Advantages of Digital Rupee

Shaktikanta Das emphasized that the Digital Rupee could enhance the efficiency of international money transfers by reducing time and cost. This initiative is particularly beneficial for developing economies like India.

Comparison with Cryptocurrencies

Das compared the Digital Rupee favorably to cryptocurrencies, pointing out its stability and the central bank's control. He voiced concerns over Bitcoin and other altcoins' lack of intrinsic value, highlighting the potential of CBDCs to modernize international payments.

Challenges of Implementation

Despite ongoing CBDC pilots in India, adoption has been slow. By late June 2023, only 1 million retail transactions had been recorded. To encourage usage, banks have introduced incentives like partially paying salaries in digital currency.

As India holds an unclear position on cryptocurrencies, the Reserve Bank's efforts in promoting the Digital Rupee illustrate a push towards improved financial infrastructure and security.