Sharp Decline in Usage of India’s Digital Rupee Following Early Adoption

India’s central bank digital currency (CBDC), the digital rupee, has seen a sharp decline in usage, plummeting to just one-tenth of its peak in December 2023, as reported by sources involved in the pilot project. 

Initially, the Reserve Bank of India (RBI) achieved 1 million daily retail transactions by incentivizing banks and incorporating the digital currency into salary distributions. However, after the incentives ended, daily transactions dropped to around 100,000, indicating minimal organic demand. 

Currently, the RBI’s focus is on technology testing and use case development, with no immediate plans for widespread expansion of the digital rupee.

Clever Robot News Desk 27^th June 2024