JPMorgan on India’s Blockchain and CBDC Future

Naveen Mallela, global co-head of Onyx, JPMorgan’s blockchain and digital currency division, highlighted the fast-growing adoption of blockchain technology in India, especially following the introduction of the central bank digital currency (CBDC), the e-rupee, in 2022. He pointed out that CBDCs mark a major step forward for payments in India, serving as the next phase in the development of the Unified Payments Interface (UPI), which has already achieved international acclaim.

Mallela stressed the importance of fully digitizing cash to allow for payments even without internet access, thereby encouraging the use of CBDCs. He also expressed support for the concept of the “Finternet,” a global ledger he believes could surpass past digital efforts.

His comments came as Reserve Bank of India (RBI) Governor Shaktikanta Das announced ongoing pilot tests for CBDCs that include offline and programmable features. Das emphasized the importance of a cautious rollout based on pilot data to carefully assess the effects on users, monetary policy, the financial system, and the economy.

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