India has announced plans to restructure its economy with a Central Bank Digital Currency (CBDC) at its core. This was revealed by Shaktikanta Das, the outgoing Governor of the Reserve Bank of India (RBI).

Das reflected on the achievements of the past six years, which included the establishment of an innovation hub in Bangalore and the launch of a fintech innovation sandbox.

A key focus of RBI’s initiatives has been CBDC development. Under Das’s leadership, the RBI pioneered the digital rupee pilot project, while other regulators around the world are still in the early stages of discussions and trials.

“CBDCs have enormous potential in the coming years. In fact, they represent the future of money,” Das stated.

He expressed confidence that national digital currencies could become the backbone of future payment systems for both domestic and cross-border transactions.

Earlier, Bloomberg reported that the RBI is exploring the use of CBDCs as a settlement mechanism for a platform connecting India with Sri Lanka, Bhutan, and Nepal.

In 2023, the RBI began discussions on cross-border payments using the digital rupee with 18 countries.