- The Reserve Bank of India is currently negotiating with 18 global central banks
- The CBDC’s goal is to increase foreign trade potential without dollar reserves
The Economic Times published an article on June 27 describing the Reserve Bank of India’s ambitious foreign trade plans.. The RBI is now known to be in discussions with representatives from at least 18 countries about the possibility of making international payments using the digital rupee.
The Reserve Bank of India Governor, Shaktinta Das, spoke in London in June, where he noted the importance of developing foreign trade infrastructure for the digital rupee. CBDC was scheduled to have more than a million domestic users by early July. He said:
“Cross-border payments will become much faster, smoother and extremely cost-effective.. This is another area that needs a lot of attention. We are in constant dialogue with other central banks that have implemented or are about to implement CBDC.”
In another public statement, Das explained that India is willing to use CBDC as a payment method for importing Indian goods to countries that have trouble supplying US dollars. And as early as July 2022, banks from 18 countries opened vostro accounts in rupees.
Also one reason for betting on the digital rupee in foreign trade transactions is a desire to preserve the country’s dollar reserves.. It is noted that during the “taper tantrum” period in India, there was a crisis in the external sector, and the RBI had to attract external inflows by providing some incentives. The organization does not want this situation to happen again.