The Indian rupee has fallen to an all-time low, sinking below 84.00 against the US dollar. This drop occurred amid sustained high demand for the American currency from foreign banks. In the last 10 sessions alone, foreign investors have withdrawn approximately $8 billion. Previously, the Indian currency had managed to stay afloat slightly above the 84.00 mark for over two months, thanks largely to regular interventions by the Reserve Bank of India (RBI).

Analysts at XPBEE point out that the Indian regulator is attempting to remedy the situation by introducing a central bank digital currency (CBDC). The governor of the RBI, Shaktikanta Das, believes that the digital rupee could become a more stable and controllable virtual currency, protecting Indian citizens from the high volatility of crypto-assets and associated risks. Recently, he optimistically stated that "with the use of a central bank digital currency, India will have a unique opportunity to become a leader in international payments."

However, the statistics tell a different story. According to the Indian central bank, since December 2023, the number of daily transactions with the government-backed stablecoin has dropped approximately tenfold. As a result, the RBI has decided to slow the roll-out of the digital rupee and implement it gradually. Yet, it seems time may not be on the RBI’s side.