The Reserve Bank of India is expanding its cross-border payments platform.
The Reserve Bank of India (RBI) is looking to expand its cross-border payment platform – which allows for faster settlement – by adding new business partners in the Asia and Middle East regions.
According to a Bloomberg report, the United Arab Emirates (UAE) plans to increase its cross-border settlement program as India has agreements with neighboring Sri Lanka, Bhutan and Nepal.
India is exploring a cross-border payment solution using Central Bank Digital Currencies (CBDCs) as the primary means of settlement.
The Reserve Bank of India's CBCC is currently a bank-to-bank solution – not a widely accepted consumer-facing central bank digital currency. However, the bank may expand the CBDC to include more retail customers in the future, but has not provided any time frame for the wholesale retail CBDC.
Different stages of CBDC development around the world. Source: Atlantic Council
Related: Pakistan moves to regulate cryptocurrency, CBCCs as legal tender
Development of Indian CBDC
India continues to be a major proponent of CBDCs globally, along with BRICS members China and Russia. India began exploring the possibility of CBDC settlement in 2020, and in 2022, the Reserve Bank of India began testing CBC development through pilot programs.
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India later announced that it has accumulated around 5 million users for the Digital Rupee pilot program by August 2024. Speaking at the International Conference on Digital Public Infrastructure and Emerging Technologies, Shri Shaktikanta Das said there is no rush to convert the Digital Rupee pilot program to a Digital Rupee pilot program. A standardized, system-wide CBDC for the Indian public.
During the conference, Das revealed plans to make sovereign CBCC schemes more interoperable by adopting a “plug-and-play” system that would allow seamless and efficient transactions between different systems.
The central bank's push to develop digital currencies has drawn criticism from privacy advocates, human rights activists and libertarian-minded individuals. Critics say the risks of centrally controlled digital ledgers and the potential for abuse by governments far outweigh any costs or efficiency benefits.
Magazine: India calls for new crypto ban to support CBDC, Lazar Group strikes again: Asia Express
