India's digital rupee adoption plummets after central bank incentives end

According to sources involved in the pilot project, the use of India's central bank digital currency (CBDC), the digital rupee, has fallen sharply to one-tenth of its peak in December 2023.
The Reserve Bank of India (RBI) initially brought the daily retail transactions of the digital rupee to 1 million by incentivizing banks and allocating a portion of salaries using digital currencies. However, when these incentives ended, its daily trading volume fell to about 100,000, indicating a lack of organic demand. The central bank is currently focused on testing technology and developing use cases, with no immediate plans for rapid expansion.