Reserve Bank of India (RBI) advocated a phased approach to implementation CBDC To maintain control over the process. News 18 writes about it, citing the regulator’s annual report.

“The Reserve Bank proposes a step-by-step approach to CBDC implementation, going through the proof-of-concept, pilot projects, and launch phases. […] The document explores relevant CBDC design elements that can be implemented with little or no disruption.

RBI noted that it focuses on identifying the pros and cons of launching a digital rupee. According to the regulator, its design should “align with the objectives of monetary policy, financial stability, and the efficient operation of currency and payment systems.”

The Central Bank also announced the establishment of the Innovation Center (RBIH) to promote innovation. Yapı will cooperate with financial sector institutions, technology and industrial organizations.

As part of its mandate, RBIH will develop an internal infrastructure to foster research in the fintech sector and facilitate interaction with startups.

In early 2021, the Reserve Bank began exploring the potential of the digital rupee. The organizer was interested in the feasibility of the launch and the potential of such a vehicle.

In July, RBI said it is working on a phased CBDC rollout strategy and launch process for both the wholesale and retail segments.

In November, the regulator acknowledged that it could conduct a pilot launch of the national digital currency in the first quarter of fiscal 2022.

Recall that in May 2022, the media learned about the fears of the Reserve Bank of India about the possible dollarization of the economy due to cryptocurrencies.