Key Takeaways
- India to go live with its retail pilot plan for eRupee on December 1, 2022.
- The digital version of rupee will be open to four banks in four cities initially.
- CBDCs will be available in the same denominations as the physical Indian Rupee.
The journey of India’s adoption has been quite phenomenal. The finance ministry laid its taxation regulation in February’s Budget session. Later, the guidelines for crypto tax were set in stone by the RBI. Despite being skeptical about crypto regulation the Indian finance ministry carefully examined how the crypto system works and drafted the regulatory framework in the interest of India’s standing on GDP and other crucial aspects.
As per recent discussions in the realm of the Indian finance ministry, private crypto assets may not be accepted as it could pose a potential threat to the overall system. Crypto assets that are built on public blockchains and are traceable may see acceptance in the near future. However, due to crypto’s volatile nature, one cannot possibly guess the future of crypto assets.
The RBI published a 50-page document on its pilot plan of launching the eRupee. At that press time the central bank had planned to launch the e rupee and offer in wholesale to the banks. These institutions will extend the e -rupee to selected customers for the time being. RBI has selected banks like HDFC, Kotak Mahindra, Bank of Baroda, State Bank of India, Yes bank and IDFC bank to deploy the eRupee.
Additional Read: India aims to focus on a Framework for Crypto during G20 Presidency, Says Sitharaman
Fast Forward to CBDC launch on December 1, 2022
RBI in tandem with the central government had launched the wholesale pilot plan on November 1, 2022 and now they are ready to launch the retail e Rupee to selected 4 banks. According to the Reserve Bank of India, the e Rupee is a digital version of physical notes or coins and will not offer any interest. The e Rupee will offer pivotal features like trust, safety, and settlement finality. The e Rupee can be deposited to banks, according to a statement made by the authorities
Additional Read: RBI unveils Features of Central Bank Digital Currency (Digital Rupee)
Fast Fact: India leveraged blockchain technology to register the supply chain cycle of Covid vaccines as well as citizens who have vaccinated themselves are recorded on the blockchain technology.
Who is eligible to access the eRupee?
Initially, the digital rupee could only be accessed through wallets created by four banks: State Bank of India, ICICI bank, Yes bank, and IDFC First bank. It is limited to four cities: Mumbai, Bengaluru, New Delhi, and Bhubaneswar. Later, the e Rupee will be extended to cities like Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. As the government has learned from the first pilot, it will extend the digital rupee to more cities and banks.
Read more: How to choose a Crypto Exchange?
How will the eRupee work?
Users will be able to transact with e₹ through a digital wallet that will be offered by the bank (the four banks selected as of now) The e₹ transactions can be both Person to Person (P2P) and Person to Merchant (P2M). Payments to merchants can be made using the QR codes displayed at merchant stores or locations.
India’s CBDC is live!
In Mumbai👇 https://t.co/RFCFZrNU80 pic.twitter.com/gKJbngMJiZ— anshul gupta (@anshgupta64) November 30, 2022
Wrapping Up
Finance Minister Nirmala Sitharaman had revealed plans to issue a digital rupee in the financial year ending in 2023 during her budget speech in February. India’s fiscal year ends on February 28, 2023.
Source: BeinCrypto, CoinDesk
Stay updated with Top Crypto News on CoinDCX blog.