1 / 10The first-ever trials for digital rupee in India may be launched by December 2021, Reserve Bank of India (RBI) Governor Shaktikanta Das was reported as saying on August 27.2 / 10Also referred to as central bank digital currencies (CBDC), the digital currency is proposed to be a legal tender in online form. In other words, the digital rupee will be the online version of the fiat currency that is in circulation.3 / 10The RBI is 'being extremely careful about it because it’s completely a new product', Das said, while speaking to CNBC.4 / 10The central bank is looking into several aspects, including the security of digital currency, its impact on monetary policy and the cash in circulation, Das told the news channel in a pre-recorded interview.5 / 10'I think by the end of the year, we should be able to — we would be in a position, perhaps — to start our first trials,' he was quoted as saying.6 / 10The RBI chief further noted that the central bank is contemplating the choice between using a centralised ledger for the digital currency and having a digital database with access to multiple participants - also known as distributed ledger technology (DLT).7 / 10In the case of a centralised ledger, the database would be owned and operated only by the central bank.8 / 10Notably, a number of leading economies including the UK, China and Europe are exploring the use of digital currencies.9 / 10 The RBI began considering the trials after a decline in usage of cash and growing interest among people about cryptocurrencies.10 / 10Earlier, ssets might find a way to become an effective means of payment, Raghuram Rajan, former Reserve Bank of India governor, told the Reuters Global Markets Forum, that cryptocurrencies have a potential future and even though they have fluctuating values, these digital assets might find a way to become an effective means of payment,