An Indian press report states that the Reserve Bank of India plans to launch a wholesale central bank digital currency (wholesale CBDC) in January 2024. The digital rupee report from the Financial Express cites un-named sources at a bank, and so far we have not verified the news.
A year ago India initiated wholesale CBDC pilots where the CBDC is only used between banks. It started by using the CBDC to settle secondary market government bond transactions. Last month it moved on to interbank settlement in call money markets.
“The infrastructure for wholesale and retail CBDC is not very different but we need to be careful with wholesale CBDC because it will involve large transactions for which banks will be required to put in place foolproof accounting, auditing and settlement reporting systems and other security safeguards,” a senior bank official told Financial Express.
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