The Reserve Bank of India (RBI) may reportedly begin the preliminary pilot phase for its central bank digital currency (CBDC) prior to when 2021 concludes. 

Specifically, via his speech with CNBC on August 26th, RBI governor Shaktikanta Das reportedly remarked that the central bank was “being extremely careful” regarding its approach towards a digital version of the rupee, even when different nations throughout the globe have been deep-diving into their self-developed sovereign digital currencies.

Per Das, the RBI reportedly looks to channel its concentration towards exploring the potential effects of a digital rupee on India’s financial sphere, with a significant focus on particular matters, nominally monetary policy control. 

In terms of the technical aspect, the RBI governor additionally disclosed details of the central bank considering the pros and cons of going with a centralized or decentralized ledger for its proposed CBDC.

“I think by the end of the year, we should be able to […] be in a position, perhaps, to start our first trials” Das further revealed, regarding the possible timeline for the next stage of the initiative. 

The RBI governor’s remarks are reportedly in line with the recently produced comments from different central bank officials across the nation, regarding the progress of the planned digital rupee project.

RBI deputy governor Rabi Sankar previously revealed in July this year that the central bank was preferring the option of selecting a phased implementation strategy for its CBDC initiative.

With international financial entities, nominally the Bank for International Settlements, reportedly supporting CBDCs as an opposing force against cryptocurrencies and private stable coins, a variety of central banks are developing their own national digital currencies.