RBI Annual Report: Central bank aims to expand CBDC pilot in FY24

The Reserve Bank of India has said in its annual report, that it will expand its ongoing pilot for the central bank digital currency (CBDC) in the fiscal year 2023-2024.

"During 2023-24, the Reserve Bank of India aims at expanding the ongoing pilots in CBDC-Retail and CBDC-Wholesale by incorporating various use cases and features," the report said.

RBI is aiming to include more participation from the banks and expand the retail and wholesale CBDC to more locations.

CBDC are a form of digital currencies that is issued by the Central bank. They are more like a cryptocurrency but their values are fixed by the central bank. CBDC is backed by blockchain technology as an electronic version of physical rupees. The RBI launched CBDC in 2022.

As per Economic Times, CBDC systems run on the blockchain, bypassing the costs of managing and distributing physical cash. This makes CBDC transaction costs some of the lowest globally. Moreover, the systems work 24x7, all year round, ensuring real-time transactions.