Volumes yet to pick up, CBDC pilot may continue for another year

The Reserve Bank of India (RBI), which is conducting a pilot to test the central bank digital currency (CBDC) in retail and wholesale segment, might extend the testing period by another year as volumes are yet to pick up, sources in the participating banks said.

Volumes need to rise to a level that can comfort the regulator for a full-fledged launch, the sources said.

The pilot for the CBDC-wholesale was started on November 1, 2022 while the pilot for the retail segment was launched on December 1, 2022.

Nine banks were identified for the wholesale pilot, while eight started the