Central bank of India to begin testing digital rupees

Published on:

Last Updated on October 8, 2022 by Bitfinsider

According to a 50-page paper published on Friday, the Reserve Bank of India (RBI) is moving toward launching a digital rupee pilot and identifying essential aspects of the Central Bank Digital Currency (CBDC).

The Indian central bank said it will launch a pilot program for the Digital Rupee “soon” and will provide updates on its capabilities and benefits “soon.” Nonetheless, several crucial characteristics have been cautiously exposed.

The report differentiates between retail and wholesale use cases, for customers and bank-to-bank transactions, and proposes implementing both.

It also considers different issuance models, including one in which a wholesale CBDC would be account-based and issued by the central bank, but a CBDC for consumers would be token-based and administered by an intermediary.

In addition, RBI requires “reasonable anonymity for small-value transactions” to adhere to a non-interest-bearing coin resembling physical currency.

The digital rupee’s underlying technology is not yet set in stone. The RBI leaves the door open for future adaptation to decentralized technology.

The report investigates various alternatives and attempts to promote awareness of CBDCs, citing “compelling reasons” that make a national digital currency “as attractive as cash if not more.” However, the concept note is also risk-aware and attempts to implement the pilot program gradually.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.