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As its rival China tests its pioneering digital yuan, India may be warming to the idea of digitizing the rupee.

The Reserve Bank of India (RBI) has released a report, “Payment and Settlement Systems in India: Journey in the Second Decade of the Millennium,” saying it is “exploring the possibility as to whether there is a need for a digital version of fiat currency.” 

The central bank added that it would examine ways to utilize a new digital currency if one is needed and that there has been an “exponential growth of digital payments” in the country – a 12.5% and 43% increase by volume and value since 2011, respectively. 

While the RBI said it was aware of the growing popularity of cryptos globally, it stressed that Indian officials at all levels are “skeptical” and “apprehensive” about them. 

In April 2018, the RBI imposed a ban on crypto businesses but it was lifted by the Supreme Court last March.