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RBI to soon commence pilot launch of digital rupee

October 10, 2022

RBI to soon commence pilot launch of digital rupee
The Reserve Bank of India on Friday said it will soon commence pilot launch of e-rupee for specific use cases and also released a concept note on Central Bank Digital Currency (CBDC) that aims to create awareness about such currencies in general and the planned features of the Digital Rupee in particular.

As the extent and scope of such pilot launches expand, the RBI will continue to communicate about the specific features and benefits of digital rupee, from time to time, it said in a statement.

“The e-rupee will provide an additional option to the currently available forms of money. It is substantially not different from banknotes, but being digital it is likely to be easier, faster and cheaper. It also has all the transactional benefits of other forms of digital money,” the RBI said.

As for the concept note, it discusses key considerations such as technology and design choices, possible uses of digital rupee, issuance mechanisms, etc, the central bank said. It examines the implications of introduction of CBDC on the banking system, monetary policy, financial stability, and analyses privacy issues.

RBI said it broadly defines CBDC as the legal tender issued by a central bank in a digital form. It is akin to sovereign paper currency but takes a different form, exchangeable at par with the existing currency and shall be accepted as a medium of payment, legal tender and a safe store of value. CBDCs would appear as liability on a central bank’s balance sheet.

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