India leads the digital revolution: CBDC in the test run!

India leads the digital revolution: CBDC in the test run!

In a step that makes the international financial world excited, India, a member of the BRICS, successfully launched the pilot phase of its digital central bank currency (CBDC). The Reserve Bank of India (RBI) began testing the digital currency for trade and everyday transactions at the beginning of this year. The goal is to analyze security aspects and evaluate the economic effects. This advance could catapult the Brics countries into a pioneering role in the digital currency area, especially compared to the 134 nations that are still in the development stage.

The deputy governor of the Indian Central Bank, T Rabi Sankar, has confirmed that the pilot mode of the CBDC is in advanced testing. The introduction of the digital currency should be provided for both state and private and institutional users. At the moment, however, the RBI does not rush, as Sankar emphasized: "We are not in a hurry to roll out the CBDC immediately." A precise start date was not set, but the BRICS countries are planning to announce details as soon as it is clear what effects the introduction could have.

Brics and the global financial market: a change of power?

In addition to India, Russia is also located in the advanced test phases of its digital central bank currency, the digital rubles. The plan is clear: a gradual reduction in transactions in US dollars in favor of the new digital currencies. The aim of the BRICS countries is to break the supremacy of the US dollar in world trade and to initiate a new era in the financial industry. These developments could have far-reaching consequences for the global financial market and favor the DE dollarization agenda of the BRICS.