On Tuesday, the Reserve Bank of India launched a trial program for its digital currency, allowing certain participating institutions to use it to settle secondary market transactions involving government securities.
India's central bank RBI launches the first pilot of Digital Rupee – Wholesale segment today and within a month commence the first pilot for the retail segment in select locations in closed user groups comprising customers and merchants. pic.twitter.com/AdFwaz7Owb
— The Tatva (@thetatvaindia) November 1, 2022
According to information Clearing Corp. of India provided, the first bonds to be exchanged using the new currency represented 7.26% of 2032 bonds and 7.38% of 2027 debt. Nine financial institutions are taking part in the test run.
The Reserve Bank of India (RBI) announced on Monday that the e-rupee would be piloted for usage in select retail outlets within the next month. The limited release occurred after the Singaporean monetary authority revealed testing of a digital version of the local dollar the day before.
Countries like China and the Eurozone have been experimenting with digital currencies, while others like the Bahamas are looking at measures to counteract the threat that private digital currencies pose to the financial system.
E-rupee will be similar to Digital Currency
The RBI noted in a concept note that the e-rupee would provide users with a similar experience to dealing in currency in digital form without the risks associated with private cryptocurrencies.
Central bank digital currencies will protect consumers by avoiding the negative social and economic consequences of private digital currencies while still providing the benefits of digital currencies.
A total of eleven financial institutions in India are taking part in the pilot program. These include ICICI Bank, Union Bank of India, Yes Bank, State Bank of India, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, IDFC First Bank, and the Indian subsidiary of HSBC Holdings.
RBI is launching 1st pilot of wholesale CBDC tomorrow, 9 Banks have been Identified for the Pilot
•IDFC First Bank
India will join the few countries now who have their own Digital Currency 🚀
— Ravisutanjani (@Ravisutanjani) October 31, 2022