The Apex bank in the country aims to engage nine banks, including top lender State Bank of India, in the pilot. Other potential participants include the Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC.
With the rupee pilot use case, RBI hopes to settle secondary market transactions in government securities. It is worth noting the CBDC, as reported, manifested to enhance the efficiency of the interbank market.
The central bank also aims to unveil the pilot of the retail version of the asset in a month. RBI believes the country can achieve better financial stability with government-backed virtual assets. Further, it asserts that private digital assets, like BTC, pose great risks to the economy owing to their inherent volatility.
Occasioned by this development, India became one of the first major economies to initiate a wholesale CBDC pilot. According to Anita…
