Published on July 29, 2021
-By Mr. Hitesh Malviya, founder, itsblockchain.com
Data is going to be huge :
CBDC implementation in the wholesale and retail segments is going to need tremendous amounts of effort put into data analysis. We need to find ways to make users use e-money wallets so that we can understand how they are using digital rupees and what type of purchases are being made in different time periods. The government should also pursue a series of trials in major cities across the country and see how the people are reacting.
Awareness is key :
Even some of the well-established countries are finding it challenging to educate the masses on CBDCs, so if people are not ready to accept e-money as a form of payment, it is going to hinder the growth of adoption. From small merchants to large stores, everyone needs to have knowledge about such digital payments and provide an option along with other types of payments like a debit card or UPI. Shopkeepers and restaurant owners also need to understand how they can process digital currency payments. A demo drive for heavily populated streets can be a useful tactic.
Utilization of Tourist Places :
Foreigners who don’t have local bank accounts face difficulties in making payments, so they should be able to have access to government-backed digital currency for everyday use. This not only helps in acquiring more test data but also elevates a high degree of internationalization.
With so many unanswered questions, we have to pay close attention to RBI’s pilot implementation and different stages of CBDC development. For India to take back its leadership position in payment systems, we need to see more action and drive towards solving the main technical challenges associated with CBDC.