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Dilip Asbe’s Optimism for India’s Central Bank Digital Currency (CBDC) Initiatives
Dilip Asbe, managing director of the National Payments Corporation of India (NPCI), recently expressed his support for the central bank’s new digital rupee initiative. At the Mumbai Tech Week panel, he highlighted the potential of the Reserve Bank of India’s CBDC plans to drive the next wave of fintech innovation.
RBI’s New CBDC Features
In a recent monetary policy meeting, the RBI governor announced progress on programmable money and offline functionality for the digital currency. Asbe believes that these efforts on CBDCs will be instrumental in shaping the future of financial technology in India.
Tokenization and Delivery Versus Payment
- Asbe also mentioned that the implementation of tokenization and delivery versus payment use cases could further promote CBDC adoption in the country.
- These additional features aim to enhance the practicality and accessibility of the digital currency, especially in areas with poor internet connectivity.
RBI’s CBDC Approach
In its 2024 monetary policy statement, the RBI proposed additional functionalities of programmability and offline capability in CBDC retail payments. Governor Shaktikanta Das emphasized the benefits for companies to program designated expenses with these new features.
e-Rupee Framework and Integration with UPI
- The central bank plans to establish a framework for the authentication of digital payment transactions, which includes innovative features like offline CBDC transactions and integration with India’s popular Unified Payments Interface (UPI).
- India’s largest public sector bank, the State Bank of India, has already integrated digital rupee with UPI, marking significant progress in the adoption of CBDC in retail transactions.
Wholesale CBDC Pilot Program
In addition to retail transactions, the RBI initiated a wholesale CBDC pilot program for inter-bank borrowing involving major lending banks. The central bank is exploring tech solutions for privacy concerns and is actively working on legislation to ensure the security of CBDC.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
