Consumer transactions using India’s digital rupee have slumped to one tenth of the volumes at the end of last year, or around 100,000 per day, Reuters reported citing sources. However, the Reserve Bank of India (RBI) made a deliberate push late last year to reach its goal of one million daily retail transactions using its central bank digital currency (CBDC).
To reach its objective, banks gave incentives to users and partially paid staff salaries and benefits using the digital currency. The lack of choice angered some bank employees. Despite this, banks continue to pay benefits using this method resulting in spikes in daily transaction volumes to 250,000 to 300,000 at the end of the month.
Reports surfaced in April that the central bank was in discussions with banks about how to reinvigorate both its retail and wholesale CBDC pilots. We previous reported on those talks and the slumped wholesale CBDC demand.
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