India's CBDC Rollout: Targeting 1 Million Users with Offline Focus
India is taking a measured approach to its Central Bank Digital Currency (CBDC), the e-Rupee, with a strategic rollout prioritizing offline transactions. The Reserve Bank of India (RBI) aims to reach one million users within the first three months of a full launch, a target driven by the potential for financial inclusion and streamlined digital payments, especially in areas with limited internet connectivity.
e-Rupee: Reaching a Milestone
The e-Rupee pilot program has already made significant strides, engaging over 5 million users and facilitating around 1 million transactions. As of December, the retail CBDC trial witnessed the involvement of over 100,000 customers within four months. This early adoption underscores the potential for wider acceptance and integration into the Indian economy.
Prioritizing Offline Transactions
A key aspect of India's CBDC strategy is the development of robust offline transfer capabilities. This is crucial for ensuring access to digital currency in areas with poor or no internet connectivity. Offline functionality will empower users in rural areas and those with limited digital literacy to participate in the digital economy.
Cautious Rollout and Future Growth
The RBI is adopting a cautious and phased approach to the nationwide rollout, focusing on building a secure and reliable digital currency infrastructure. The e-rupee's circulation significantly increased to ₹1,016 crore by March 2025, according to the RBI's recent report. The central bank is actively exploring various use cases and technologies to enhance the functionality and accessibility of the e-Rupee.
According to sources familiar with the matter cited by CoinDesk, India is reportedly aiming to have one million users of its CBDC within three months of launch. Development of offline transfer capabilities is Key.
Key Takeaways:
- Target: One million CBDC users shortly after full launch.
- Focus: Prioritizing offline transaction capabilities.
- Growth: Significant increase in e-Rupee circulation reported.
- Approach: Cautious and phased rollout by the RBI.