Reportedly, the FIS of the United States is taking part in this event. It has been locally reported by Monycontrol on 5th September that The Reserve Bank of India (RBI) is consulting with different state banks and fintech firms for piloting central bank digital currency (CBDC) in India.

RBI Arranges to Pilot a CBDC Project This Year

An anonymous official of a public bank has revealed that the trial will lead the Reserve Bank of India towards the release of a CBDC during the fiscal year 2022. The financial services firm of the United States named FIS was cited among the fintech organizations chosen by the Reserve Bank of India to consult with.

Moneycontrol has been ensured by Julia Demidova (the senior director at FIS) that a good collaboration is developed between FIS and the RBI. She added that they could trial releasing CBDC services by expanding the experiment span of the RBI. FIS has declared the exact date, 25th August 2022, for the inauguration of the CBDC Virtual Lab thereof on 25th August.

The firm was in advance enthusiastic in the space of CBDC as it organized roundtable meetings and conferences on the respective subject. The reports point out that the Reserve Bank of India is conversing with Bank of Baroda, Union Bank of India, Punjab National Bank, and state bank of India over taking part in the pilot. The government holds a 50% stake in each of the aforementioned financial institutions.

The Reserve Bank of India has been working toward a staged implementation of a CBDC for a considerable amount of time. The most recent reports reveal that there will be three stages for the launch of a CBDC in India, the completion of which will be spread out across the years 2022 and 2023. Nirmala Sitharaman, the finance minister of India, is in support of the adoption of a CBDC.

Indian CBDC to Challenge Local Crypto Market

Additionally, a representative from the RBI was quoted as saying that the implementation of CBDC in India could have a favorable impact on the economic growth of the nation. The conventional unified system of India, which is considered a true payment system, has appeared as the challenger to the newly established system of payment (cryptocurrency) (cryptocurrency).

A positive aspect of a central bank digital currency (CBDC) has been expressed by the RBI at the conference IMF in June. It was mentioned that a CBDC has the potential to remove all of the risks that could be associated with the cryptocurrency. As crypto is not prohibited in India, the RBI is somehow skeptical about the nature of cryptocurrency regarding the impact of the huge amount of taxes that the participants of this industry are forced to pay.