India Will Start Pilot CBDC Trading in Four Cities On December 1
India will start pilot CBDC trading in four cities on December 1. India’s central bank will launch a digital retail pilot on December 1 with the support of four banks, including State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank. The Reserve Bank of India said on Tuesday that for the first time, it will conduct a digital CBDC trial in four cities in India; Mumbai, New Delhi, Bangalore and Bhubaneswar.
CBDC trial to include nine more cities
The pilot project will eventually include nine cities and four other companies, according to the central bank. The test will be conducted with selected types of customers and vendors. The same paper money and coins currently in circulation will be used for CBDC. The virtual rupee will not earn interest and can be used to pay merchants using QR codes.
Launch of Digital Rupee
In October, it was decided to start the pilot project on December 1st. In February’s budget statement, India’s Finance Minister Nirmala Sitharaman announced plans to issue a digital rupee in the fiscal year ending in 2023. According to RBI, banning cryptocurrencies is the best policy for India.