Outgoing Reserve Bank of India (RBI) Governor Shaktikanta Das has outlined a vision for India’s economic future powered by a central bank digital currency (CBDC). On his final day in office on December 10, Das emphasized the transformative potential of the digital rupee, positioning it as a cornerstone of India’s modern economy.
In a farewell speech, Das reflected on his six-year tenure, highlighting initiatives such as the RBI Innovation Hub in Bengaluru and the establishment of a regulatory sandbox to foster fintech advancements. He underscored India’s leadership in CBDC adoption, noting that many central banks remain in preliminary stages of exploration and experimentation. “RBI, among the central banks, is a pioneer,” Das said, referring to the institution’s pilot launch of the digital rupee.
Das expressed confidence in CBDC’s long-term potential to replace India’s reliance on paper currency. “CBDC has a huge potential in the coming years. In fact, it is the future of currency,” he stated, predicting its gradual integration into the financial system.
The RBI has been actively working to expand its CBDC capabilities. In November, the central bank sought to enhance cross-border payments by adding new trading partners in Asia and the Middle East. Bloomberg previously reported that India was considering using CBDCs as the primary settlement mechanism for its payments platform, which currently operates in Sri Lanka, Bhutan, and Nepal.
However, Das also stressed the importance of a measured approach to CBDC implementation. He warned against a system-wide rollout without a thorough understanding of its impact on users and monetary policy. “Such understanding would emerge from the generation of user data in pilots. The actual introduction of CBDC can be phased in gradually,” he explained.
Despite the cautious approach, Das remained optimistic about the digital rupee’s role in advancing both domestic and international payment systems. “CBDC can underpin the payment systems of the future,” he said, emphasizing its potential to improve efficiency in cross-border transactions.
As Shaktikanta Das concludes his term, his vision reflects India’s commitment to digital innovation while maintaining financial stability. The gradual adoption of the digital rupee could mark a significant shift for India’s economy, paving the way for a more efficient, CBDC-driven financial ecosystem.