The launch of India’s much-awaited Central Bank Digital Currency (CBDC) has been announced by the Reserve Bank of India. Assumed as a sort of official cryptocurrency of the nation, the digital currency will be available for retail users from December 1. According to RBI, December 1 will see the initial stage of a pilot project covering certain geographies and banks in a closed user group (CUG) made up of participating customers and business owners. In the initial phase of the pilot, the merchants and customers of four cities will be enabled to use to digital rupee or e-rupee. The allowed cities are New Delhi, Mumbai, Bhubaneshwar, and Bengaluru.
The launch of the digital currency will be controlled by four banks in these cities including ICICI Bank, State Bank of India, IDFC First Bank, and Yes Bank. Subsequently, the service will be further extended to more cities like Guwahati, Gangtok, Ahmedabad, Kochi, Indore, Patna, Lucknow, and Shimla. Soon, the pilot will be joined by more banks like Union Bank of India, Bank of Baroda, Kotak Mahindra Bank, and HDFC Bank. According to the statement, the pilot’s parameters may be gradually expanded to cover more banks, users, and places.
The CBDC is a legal tender issued by a central bank in digital form, according to past statements by the RBI.
The digital rupee for retail users will essentially act as an e-version of cash which would enable users with most of their transactions of retail products. Since it will be the central bank’s direct liability, it may be used by everyone, including the private sector, non-financial consumers, and enterprises. It will also be able to give access to secure money for payment and settlement. The CBDC is a legal tender issued by a central bank in digital form, according to past statements by the RBI. It can be used the same as the fiat currency as well as replaceable with fiat currency. The only differentiation that took place is the form of it.
A digital token will be the form in which an e-rupee will stand for money. It will be disseminated through middlemen, i.e., banks, and printed in the same denominations as coins and paper money. As per RBI, users can use e-R for transactions with the help of a digital wallet of the partner banks on their mobile phones. In the shape of a token, the digital currency will act as money. It will be disseminated through middlemen, i.e., banks, and printed in the same denominations as coins and paper money.
Using a digital wallet issued by the participating banks and stored on mobile phones and other electronic devices, customers would be able to transact using e-R, according to the RBI. The e-R would resemble a virtual token that serves as a substitute for money. It is possible to conduct both person-to-person (P2P) and person-to-merchant transactions (P2M). QR codes can be used for sending money to the retailer. The e-R would provide characteristics of physical cash, such as trust, safety, and settlement finality, according to RBI. Like cash, it won’t accrue interest and can be changed into other forms of payment like bank deposits.
The e-R would resemble a virtual token that serves as a substitute for money.
The digital rupee for retail users will essentially act as an e-version of cash which would enable users with most of their transactions of retail products. Since it will be the central bank’s direct liability, it may be used by everyone, including the private sector, non-financial consumers, and enterprises. It will also be able to give access to secure money for payment and settlement. The CBDC is a legal tender issued by a central bank in digital form, according to past statements by the RBI. It can be used the same as the fiat currency as well as replaceable with fiat currency. The only differentiation that took place is the form of it.
A digital token will be the form in which an e-rupee will stand for money. It will be disseminated through middlemen, i.e., banks, and printed in the same denominations as coins and paper money. As per RBI, users can use e-R for transactions with the help of a digital wallet of the partner banks on their mobile phones. In the shape of a token, the digital currency will act as money. It will be disseminated through middlemen, i.e., banks, and printed in the same denominations as coins and paper money.
Using a digital wallet issued by the participating banks and stored on mobile phones and other electronic devices, customers would be able to transact using e-R, according to the RBI. The e-R would resemble a virtual token that serves as a substitute for money. It is possible to conduct both person-to-person (P2P) and person-to-merchant transactions (P2M). QR codes can be used for sending money to the retailer. The e-R would provide characteristics of physical cash, such as trust, safety, and settlement finality, according to RBI. Like cash, it won’t accrue interest and can be changed into other forms of payment like bank deposits.