Delivering a speech to outline the RBI’s plans on Thursday, Deputy Governor T. Rabi Sankar said policymakers were considering running pilot programs for the proposed central bank digital currency. Its introduction will protect people from the volatility of private virtual currencies, he said. “Central banks have increased their attention on digital currencies,” in recent years, Sankar said, adding that the introduction of such currencies -- which will be backed by the sovereign -- will help in bringing down the usage of cash in the economy, while minimizing the damage to the public from the usage of private currencies. Sankar’s speech comes just days after the European Central Bank took a major step toward a digital euro approving an “investigation phase” that could ultimately lead to a virtual currency being implemented around the middle of the decade.

https://www.bloomberg.com/news/articles/2021-07-22/india-eyeing-phased-roll-out-of-central-bank-digital-currency