India blockchain-based digital rupee is likely to see more cross-border transactions in 2025, while exploring programmable money use cases. Those Reserve Bank of India (RBI) may also integrate the e-rupee with existing digital payment systems to drive adoption.
Recognition of user education as key, RBI will offer personal training on Central bank digital currency (CBDC) in the capital of India, New Delhi, from 3-7 February 2025.
“By 2025, we can expect the e-rupee to improve cross-border transactions and use programmable money. Integration of the e-rupee with existing payment systems such as Unified Payments Interface (UPI) could provide a seamless experience and drive adoption, but user education and incentive structures will be key,” said Rohan SharanFounder and chief executive of Timechain Labsan on-chain application development company used BSV blockchain Technology.
In November 2024, former RBI Governor Shaktikanta Das said that while the central bank is experimenting with new CBDC use cases, it has not set a target date for the full launch of the e-rupee.
“I think CBDC will facilitate cross-border payments in a much more efficient and cost-effective way than anything else. I think CBDC can coexist with UPI; I think both can complement each other; both can coexist,” Das said.
So that feels that CBDC has a massive potential in the future and is the future of currency.
In 2025, “efforts to integrate the e-rupee with existing digital payment systems will be pivotal,” he pointed out. Amit Kumar Guptaa legal practitioner at the Supreme Court of India.
“The government is expected to finalize a regulatory framework for CBDCs,” Gupta told CoinGeek.
The RBI started its first digital rupee pilot in the wholesale segment on November 1, 2022, during the Retail digital rupee pilot December 2022 started.
Nationwide CBDC Rollout in 2025?
“In 2025, we can expect the RBI to refine its approach based on pilot feedback, potentially leading to broader implementation strategies that can improve financial inclusion and streamline payment processes.” Sharat ChandraFounder of EmpowerEdge Ventures and a Startup enabler, said CoinGeek.
India is likely to continue experimenting new use cases for e-rupee. Some banks were to deliver programmed CBDC loans to tenant farmers to use for a specific purpose, such as buying fertilizer. In these cases, the CBDC can only be clamped and used in a fertilizer depot; it cannot be used elsewhere.
Those e-group is also used to link earmarked money to the generation of agricultural carbon credits. For example, banks may impose restrictions on the use of the money to ensure that it is only spent on specific items such as fertilizer or other raw materials.
“I foresee national equipment in 2025. The success of the pilot sets the stage for wider adoption, potentially targeting millions of users by mid-2025. I see the trend lines moving across retail and wholesale and the e-rupee could have innovative applications such as enabling programmable money and smart contract automation. Raj KapoorFounder of India Blockchain Alliance (IBA).
“We are expected to engage in more cross-border CBDC projects, positioning the e-rupee as a tool for regional financial integration. To boost adoption, comprehensive guidelines for CBDC use and integration with private fintechs are on the anvil, which are expected to ensure security and scalability,” Kapoor told CoinGeek.
Cloud facility on the go
In 2025, the central bank reported is rolling out a pilot program that provides financial firms with affordable local cloud data storage options. The RBI Cloud Platform will partner with local information technology companies, positioning them to compete with global giants such as Amazon Web Services (NASDAQ: AMZN), Microsoft Azure (NASDAQ: MSFT), Google Cloud (NASDAQ: GOOGL), and IBM Cloud (NASDAQ: IBM). The cloud service is designed to meet the needs of smaller banks and financial services companies that find current offerings too expensive.
In November, that informed that the work to set up the RBI’s financial sector cloud facility has picked up speed.
RBI announced the introduction of a special cloud facility for the financial sector in response to the rising cybercrime and to strengthen data security. The new cloud infrastructure is expected to be designed to improve privacy, scalability and business continuity. The central bank said it intends to roll out the cloud facility in a calibrated manner in the medium term.
Banks and financial entities maintain an increasing amount of data, and many of them use cloud facilities for this purpose, according to the RBI.
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