A graded approach is set to upgrade the process of launching CBDC in India for a better future

The Reserve Bank of India (RBI) has officially announced the proposition of adopting a graded approach to the introduction of the new digital currency of India known as Central Bank Digital Currency (CBDC). According to the annual report of the RBI, the digital currency in India will process step by step through different stages of Proof-of-Concepts 12, pilots, as well as the launch to officially launch as CBDC for Indian citizens to drive profit in crypto wallets.

The RBI is focused on evaluating the pros and cons of introducing the digital currency CBDC in India. It is also needed to design elements of this digital currency for the welfare of citizens of the country. The key reason is that the design should be simultaneous with the stated objectives of monetary policy, efficient operations of digital currency, financial stability, and payment systems.

The Union Budget 2022-2023 has announced the introduction of the CBDC with an appropriate amendment to the RBI Act, 1934, that has been included in the Finance Bill, 2022. A graded approach is known as a structured method determining multiple factors to evaluate the impact of the object.

Thus, the RBI has proposed the three-step graded approach for the first digital currency of India, CBDC, to bring a change in the traditional financial system without a drastic impact. The Finance Minister of India has high hopes for the launch of the digital currency that can drive the digital economy to the next level.

That being said, the RBI is working on launching the digital currency in steps to not disturb the digital economy of the country with the sudden introduction of the CBDC. It is speculated that the graded approach will help to boost the process of the digital currency launch efficiently and effectively.