Digital Rupee at the Core of India’s Economic Future, Says RBI Governor

On his final day as the Reserve Bank of India (RBI) governor, Shaktikanta Das emphasized the transformative potential of India’s central bank digital currency (CBDC), the digital rupee. His tenure, marked by innovation and technological advancements, set the stage for a new era in India’s financial landscape.

A Legacy of Innovation and Progress

In his farewell speech on December 10, Das reflected on the strides made during his six years in office. Initiatives such as establishing the RBI Innovation Hub in Bengaluru and launching a regulatory sandbox for fintech innovation underscored his commitment to harnessing technology for economic progress.

Das highlighted India’s leadership in CBDC development, contrasting it with other central banks still in the experimental phase. “RBI, among the central banks, is a pioneer,” he remarked, referencing the pilot launch of the digital rupee.

Das expressed confidence in the digital rupee’s ability to redefine India’s financial future. “As I see it, CBDC has a huge potential in the coming years, in the future. In fact, it is the future of currency,” he stated.

In recent months, the RBI has taken significant steps to expand its cross-border payments platform. In November, efforts began to onboard trading partners from Asia and the Middle East, aiming to streamline instant settlements.

While Das supported the gradual rollout of the CBDC, he urged caution in its full-scale implementation. “Such understanding would emerge from the generation of user data in pilots. The actual introduction of CBDC can be phased in gradually,” he noted.