India Approves Digital Rupee Pilot, Joining Race for Central Bank Digital Currency

India’s central bank formally launched the digital rupee pilot in four metro cities, marking a big step toward deploying central bank digital currency in South Asia. The new CBDC is interoperable with UPI apps and supports peer-to-peer and merchant payments. While the pilot is small-scale, officials say broad rollout could follow by 2026, bringing secure, instant, government-backed digital cash to millions. Crypto industry and fintech leaders are watching closely, with some predicting further tokenization and blockchain integration in India’s financial system.