People now have access to digital currency for the first time in the country’s history. India’s economy made further progress toward the digital transition. Indian digital Rupee was introduced for the first time in India on December 1. India’s digital currency, the “Digital Rupee,” will utilize block chain technology in addition to other innovations. India’s digital economy would be given a big boost with the launch of Central Bank Digital Currency (CBDC). Both the wholesale (CBDC-W) and retail (CBDC-R) versions of the cryptocurrency were released on November 1 and December 1, respectively.
What is a Digital Rupee?
The Indian Rupee is a fiat currency, and its digital counterpart is the Indian Digital Rupee. The Central Bank Digital Currency (CBDC) can be characterized as the legal money issued by the Reserve Bank of India, according to the concept note. The e-Rupee or digital rupee has been promoted. The RBI has explained that the digital rupee will truly function as a token. CBDC is actually the digital form of these already circulating notes. This virtual rupee can be exchanged between any two buyers or sellers online.
Which Bank is Selected for the Project?
The Reserve Bank of India has formed alliances with four major Indian banks: State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank. According to RBI, at first, the pilot would only be available to the closed user group (CUG), which would include only the retailers and customers who voluntarily participated in the study. These four financial institutions have been chosen by the RBI to participate in the pilot program. The next stage of this pilot project will include the participation of the Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank. However, it is possible that Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla may all gain access to digital currency services as part of phase two of this project.
Indian Digital Rupee and People
On the first day of use, Indian digital rupee transactions broke all previous records. The Reserve Bank of India (RBI) issued 1.71 crores in digital rupees on the first day, the data shows. A source with knowledge of the situation has informed us that the Reserve Bank plans to issue more digital rupees in the coming days to meet the rising demand from financial institutions.