Local reports indicate Reserve Bank of India is looking for ways to address the lack of interest in the central bank digital currency (CBDC). Additionally, yesterday IndusInd Bank said it has executed the first programmable digital rupee pilot.
So far fifty farmers in Maharashtra have received payment with the programmable CBDC in return for recycling agricultural waste and hence generating Circularity Credits, a type of carbon credit. The plan is to expand the pilot to 1000 farmers. The programmable aspect is the funds carry restrictions regarding how they’re spent.
Circularity Innovation Hub (CIH) was the sponsoring agency, and it collaborated with blockchain firm Emertech Innovations. The latter provides traceability regarding the generation of revenues from Circularity Credits, as well as its disbursement. Hindustan Agro and Jackfruit King Company led farmer engagement.
Details about the recycling were a little thin, but it’s not uncommon for farmers to burn cut vegetation. Last year Jackfruit King and CIH teamed up – we believe for this project – to get 1,000 farmers to recycle their agricultural waste to generate ethanol biofuel. A second phase will target plastic recycling.
Fading digital rupee interest
In other digital rupee news, MoneyControl reported that the Reserve Bank of India held meetings with banks, fintechs, payment providers and the National Payments Corporation of India (NPCI) to address the lack of consumer and wholesale interest in the CBDC. While CBDC transactions spiked in late December, the driver was integration with the faster payments solution UPI.
