India’s Central Bank Explores Cross-Border Use Cases for Digital Rupee

The Reserve Bank of India is advancing its central bank digital currency (CBDC) initiative with plans to introduce new functionalities and test cross-border payment applications. The next phase of development will build on existing wholesale and retail pilots launched in late 2022.

While adoption has been slow—reaching just 1 million retail transactions by June 2024—the digital rupee’s circulation value surged 334% year-over-year to ₹1,016.46 crore ($122.1 million). The RBI now aims to collaborate with international partners on bilateral and multilateral CBDC payment systems.

Banks have been incentivizing usage through salary payments and other measures, though daily transaction targets remain unmet. The MOVE signals India’s strategic positioning in the global race for CBDC relevance as central banks worldwide explore blockchain-based settlement systems.