India: The Reserve Bank launches the digital rupee!

After months of debate and discussion, the Reserve Bank of India finally announces the launch of the digital rupee. A month after the launch of the wholesale digital rupee, the Central Bank of India is starting a new project that has many benefits according to some people.

In India, the digital rupee is finally here! A point for the CBDC?

The Reserve Bank of India (RBI) is starting its pilot project for the digital retail rupee. The first tests began on Thursday with four lenders. Notably, IDFC First Bank, YesBank, ICICI Bank and SBI. For the moment, the exercise is done in four cities of the country. Among others, New Delhi, Bangalore, Mumbai, and Bhubaneswar.

According to statements from the bank, the retail digital rupee will present itself as a digital token representing legal tender. Thus, the RBI digital currency will have the same denominations as coins and paper money. Currently, the four banks concerned send e-mails to their customers asking them if the new form of transaction interests them.

However, retail central bank digital currency (CBDC) will only be available to merchants and certain customers. As for the distribution, it will be done through the banks. Simply put, there will be no noticeable difference between official currency and e-rupee. According to the CEO of BCT Digital, Jaya Vaidhyanathan, the RBI digital currency has many advantages since it is a sovereign currency.

Its main advantage is, of course, that it limits settlement risks in the financial system. The operation of the rupee is quite simple. Merchants and some retail customers can use an electronic wallet provided by the lender. However, they can also resort to using a unique QR code to complete their transactions.

More and more countries around the world are looking to set up a CBDC. Effective solution to slow the progression of cryptocurrencies ? The questions remain. However, the Reserve Bank of India decides to make things happen just a month after the launch of the wholesale digital rupee.

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