Context– India launched its e-Rupee on December 1. The Reserve Bank of India’s Central Bank Digital Currency (CBDC) is an electronic version of cash, and will be primarily meant for retail transactions. The pilot will initially cover the four cities of Mumbai, New Delhi, Bengaluru, and Bhubaneswar.
Four banks will be involved in the controlled launch of the digital currency in these four cities: State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank.
What is e-Rupee?
It is form of official Cryptocurrency. It is same as fiat currency and is exchangeable one to one with fiat currency. Only its form is different. Users can transact with e-Rupee using a digital wallet on mobile phones.
What are the benefits?
- Reducing operational costs of managing physical cash
- Innovation in Cross border payments.
- To quell concerns like money laundering, terror financing etc. with other private cryptocurrencies like Bitcoin etc.
- Reducing physical cash usage.
e-Rupee is landmark innovation in country’s payment ecosystem. However, concerns like digital divide, financial illiteracy, cyber attack risks etc. need to be addressed.
Source- Indian Express
NEWS- India launched its e-Rupee (not to be confused with e-RUPI)
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