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CBDC: RBI Starts Piloting E-Rupees for Specific Use Cases


The Reserve Bank on Friday said it will soon begin a trial rollout of the electronic rupee for specific use cases aimed at boosting India’s digital economy, making the payment system more efficient. more efficient and money laundering checks.

In a concept note about Central Bank Digital Currencythe RBI The CBDC says it is intended to supplement, rather than replace, existing forms of money and is expected to provide an additional payment method for users, not to replace payment systems. now available.

“Powered by India’s modern payment systems that are affordable, accessible, convenient, efficient, safe and secure, Digital Rupees The system will further boost India’s digital economy, make the monetary and payment systems more efficient, and contribute to further financial inclusion,” the newspaper said. speak.

CBDC is a form of digital currency issued by a central bank. While most central banks globally are exploring the issuance of CBDCs, the key drivers for issuing it are specific to each country’s unique requirements.

Government of India has announced the launch of Digital Rupee – a Central Bank Digital Currency (CBDC) from fiscal year 2022-23 onwards in the Union Budget set in Parliament on February 1, 2022.

The central bank said, “The Reserve Bank will soon begin trial rollout of the electronic rupee for specific use cases. As the scale and scope of such test roll-out expands,” the central bank said. , the RBI will continue to announce the specific features and benefits of the electronic rupee, from time to time.” CBDCs can be broadly classified into two broad categories – general purpose or retail (CBDC-R) and wholesale (CBDC-W). Retail CBDCs will be accessible to everyone, while wholesale CBDCs are designed to limit access to select financial institutions.

“For the CBDC to act as a medium of exchange, it needs to incorporate all the features that physical currency represents including anonymity, ubiquity, and finality,” the note said.

Globally, the note said that more than 60 central banks have expressed interest in CBDCs with several implementations already being tested across both Retail and Wholesale categories, and more banks are working on. testing and/or launching their own CBDC framework.

The Concept Notes present the background, motivations, selection of design features and other policy frameworks for the electronic rupee system for this country.

The aim is to build an open, inclusive, interactive and innovative CBDC system that will meet the aspirations of India’s modern digital economy.

The paper also notes that the potential impact on monetary policy from CBDC adoption remains unclear and is purely speculative as only a limited number of CBDCs currently exist as a number of countries have already enacted it. practice until now.

After considering the concerns related to anonymity, appropriate analyzes of big data generated from CBDCs can support evidence-based policymaking.

“It could also become a rich source of data for service providers to better understand financial products. Furthermore, the data will be very useful for enforcing money laundering regulations.” .

The purpose behind the release of this concept note is to create awareness about CBDCs in general and the planned features of the digital rupee in particular, the RBI said.

The note also seeks to explain the Reserve Bank’s approach to the introduction of the digital Rupee.

The Reserve Bank says its approach is governed by two fundamental considerations – to create a digital rupee as close to paper money as possible and to manage the introduction of a digital rupee seamless way.


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