Shaktikanta Das, RBI Governor said the government and the central bank are in discussion with South Asian countries to have cross-border trade in the rupee.
It is most likely that government will use the digital rupee for international cross-border trade.
Das said that the CBDC is in the testing phase and the RBI is taking a cautious approach to launching the digital rupee.
He added that if there is cloning or anything which happens, it can be very, very risky. So, they are moving through it very carefully.
On UPI, he said India has already reached agreements with countries in the region such as Bhutan and Nepal.
Das said in his keynote address at the IMF conference that expanding intra-regional trade in the South Asian region can improve growth and employment opportunities.
He said that the Rupee settlement of cross-border trade and CBDC could also be an area of greater cooperation in the future.