Trials for an Indian central bank digital currency (CBDC) could begin by December, Reserve Bank of India (RBI) Governor Shaktikanta Das said.
The central bank is studying matters related to security and the broader impact a CBDC would have on monetary policy, Das told CNBC Thursday.
“I think by the end of the year, we should be able to – we would be in a position, perhaps – to start our first trials,” he said.
Das said the RBI is exploring whether a digital rupee would harness blockchain technology or use a centralized ledger.
RBI Deputy Governor T. Rabi Sankar said in July that a digital rupee would reduce the use of cash and protect citizens from the volatility of cryptocurrency.
Among major economies, China is leading the way in the development of a CBDC. Its digital yuan, or eCNY, has been undergoing trials in various cities around the country for several months.
South Korea and Sweden appear the next most advanced in developing digital currency after China.