The Reserve Bank of India (RBI) is engaging in discussions with its counterparts in the United States and Hong Kong, as well as the Society for Worldwide Interbank Financial Telecommunications (SWIFT), to explore the feasibility of central bank digital currencies (CBDCs) transactions.
According to the local reports, RBI has established an internal working group to delve into the technical aspects of developing a roadmap for direct cross-border transactions between countries. CBDCs could enable direct settlements between parties, offering benefits such as enhanced speed and cost efficiency.
This initiative aligns with India’s recent agreements for real-time cross-border fund transfers with countries such as Singapore and the UAE. It aligns with the broader global trend of countries exploring the transformative potential of CBDCs to reshape traditional payment systems and enable more efficient cross-border transactions.
In collaboration with the National Payments Corporation of India (NPCI), the RBI seeks to simplify CBDC usage, aiming to make digital payments as seamless and convenient as traditional cash transactions. To achieve this goal, the RBI has also established a regulatory sandbox, enabling startups to explore and experiment with diverse CBDC use cases.