The Reserve Bank of India announced on Friday that the test launch of the e-rupee will take place shortly to support India’s digital economy, improve payment systems, and prevent money laundering.
⚡️FLASH: India will soon initiate the pilot launch of 'Bitcoin-like' digital currency, in what is described by the Reserve Bank of India (RBI) as an "e-rupee" in it's official concept note on Friday, mentioning it's use for specific cases only. pic.twitter.com/5PZKbiEcZ1
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According to the RBI, CBDC is intended to complement and not replace existing forms of money. Therefore, as well as offering customers another payment option, it is not intended to replace the present payment methods.
How Will This Help India?
In addition to boosting the Indian digital economy, improving monetary and payment systems, and improving financial inclusion, the paper notes that the Digital Rupee will also boost financial inclusion.
Future E-Rupee….. latest from RBI https://t.co/GszznWNDf3
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A Central Bank Digital Currency (CBDC), the Digital Rupee, was announced by the Government of India in its Union Budget presented to Parliament on February 1, 2022.
An announcement from the Reserve Bank: “E? will soon be tested for certain applications.” As the scope and size of such pilot launches increase, RBI will continue to inform the public about e-rupee’s unique advantages and features.” CBDCs can be divided into two major categories: retail CBDC-R and wholesale CBDC-W.
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As a medium of exchange, the CBDC must combine all the properties of physical money, including anonymity, universality, and finality. The CBDC has attracted the interest of over 60 central banks worldwide. In addition, many more CBDC frameworks are being developed, tested, and launched in the retail and wholesale sectors.
The report also pointed out that, given the fact that only a small number of countries have so far issued CBDCs, their prospective influence on monetary policy is still uncertain and entirely hypothetical.
The RBI said that the goal of the concept note’s release was to raise public knowledge of CBDCs in general and the proposed characteristics of the digital rupee in particular.