On his final day as Governor of the Reserve Bank of India (RBI), Shaktikanta Das outlined his vision for India’s economic transformation through the adoption of the central bank digital currency (CBDC), the digital rupee.
In his farewell address on 10th December, Das reflected on his six-year tenure, during which he championed technological innovation. Notable initiatives include establishing the RBI Innovation Hub in Bengaluru and introducing a regulatory sandbox to promote fintech developments.
Das highlighted India’s significant progress in CBDC development, contrasting it with the slower pace of many central banks worldwide, which remain in the early stages of exploration and experimentation. He described the RBI as a pioneer among central banks, citing its successful launch of pilot projects for the digital rupee. Expressing optimism, Das remarked:
“CBDC has a huge potential in the coming years, in the future. In fact, it is the future of currency.”
The RBI’s focus on CBDCs aligns with its broader ambitions to modernise payment systems, particularly for cross-border transactions. In November, the central bank sought to expand its real-time settlement platform by adding new trading partners across Asia and the Middle East. This system is already operational in Sri Lanka, Bhutan, and Nepal.
Despite his enthusiasm for CBDCs, Das has previously advocated for a cautious and phased approach to their implementation. He warned against a “system-wide” rollout without a deeper understanding of the technology’s implications for users and monetary policy. Pilots, he noted, are essential for gathering data to inform future decisions.
“The actual introduction of CBDC can be phased in gradually,” Das advised, underlining the importance of balancing innovation with prudence.
As Das departs office, his tenure is marked by confidence in the digital rupee’s potential to underpin India’s domestic and international payment systems, paving the way for a future-oriented economy.
