The central bank of India (RBI) has launched the first test for the digital rupee today (1/11/2022), involving nine local banks.
The nine participating banks are Baroda Bank, National Bank of India, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Yes Bank, HSBC, Union Bank of India and IDFC Bank.
Quoted from news.bitcoinRBI wants the use of the digital rupee as a means of payment in secondary market transactions in government securities.
“The use of digital rupees will make interbank transactions more efficient. financial transaction costs will be reduced. Settlement within the central bank will reduce transaction costs by prioritizing guarantee or collateral infrastructure for risk mitigation,” said RBI.
RBI notes that the test wants to focus the digital rupee on transactions across the board and for future cross-border payments. They will consider this from the first launch.
“The first digital rupee launch is planned to be released within a month at selected locations, between groups customer and merchant which are close to each other,” added RBI.
Central Bank Digital Currency
In early November 2022, the RBI published an updated report on various aspects and risks of the central bank digital currency (CBDC), as well as the existence of the Indian digital currency.
According to Atlantic Council’s Geoeconomic Centerwith 105 countries representing more than 95 percent of global GDP today, have felt the urgent need for the existence of a CBDC.
The Bank of International Settlements (BIS) reports that, 9 out of 10 central banks require a CBCD.
“Appearance stablecoins and cryptocurrency others actually accelerate the presence of CBDCs,” said BSI.
Meanwhile, the United States has not yet decided to issue a CBDC.
Jerome Powell, chairman of the Fed said that the digital US dollar will take a few more years to come. Also, some legislators are unsure and need a CBDC.
Fed Governor Christopher Waller said he was less supportive of the US central bank’s decision to issue a CBDC. He considered, the US is different from India which is fully supported by various other agencies for the issuance of digital rupee CBDC. [az]