India’s central bank, the Reserve Bank of India (RBI), has been conducting a pilot project on using central bank digital currencies (CBDCs) to achieve financial inclusion and improve payment systems. According to reports, the country has set an ambitious target of reaching one million CBDC users very soon, with a tentative timeline of three months. While the authorities have not clarified the technical aspects of the India CBDC project, there is speculation in the crypto community that Ripple’s XRP Ledger technology may be involved.
The XRP Ledger permits for the minting, transacting, managing, and destroying CBDCs, leading some to question whether Ripple is behind India’s CBDC initiative. However, the RBI has yet to confirm whether Ripple’s technology is being used in the project. India’s retail CBDC architects are reportedly prioritizing creating an offline version of the digital rupee, enabling offline trades, thus improving financial inclusion in the country.
The RBI is currently engaged in CBDC pilots for both retail and wholesale markets. The retail pilot is operational in over 15 cities and involves over 13 banks. The digital rupee garnered significant attention at a recent G-20 meeting hosted by India in Bengaluru. During the meeting, RBI Governor Shaktikanta Das mentioned that a respected figure from the international financial industry had praised the CBDC’s design.
The Reserve Bank of India (RBI) is exploring the feasibility of enabling offline transactions through wearables, credit and debit cards, Bluetooth technology, and smartphones. Moreover, the RBI has been in discussions with private firms to explore solutions for enhancing scalability, although it has yet to enter into any collaboration with any notable blockchain-related commodities.
The RBI has not set a specific timeline for releasing a full-scale retail CBDC, although it had suggested earlier that it aimed to launch it by the end of the year. With the ambitious target of reaching one million CBDC users within three months, whether Ripple’s technology will play a part in India’s CBDC plans remains to be seen.
