All you need to know about RBI’s digital currency, ‘e-rupee’

By

e-rupee

e-rupee or CBDC (Central Bank Digital Currency) is a currency in the digital form which will be based on a technology called decentralized ledger.

e-rupee 2

The entire system will run on blockchain technology which moderates the entire cryptocurrency system while this will be entirely moderated by RBI.

e-rupee 3

RBI has announced its digital currency pilot project beginning on December 1st, which is set to proceed in a phased manner in proper manner involving senders and receivers.

e-rupee 4

The prime objective of the pilot project is to understand the technology’s robustness and efficacy and process the creation of digital rupee, distribution, and storage in real time.

e-rupee 5

Transactions mode in CBDC will be based both on the P2P and P2M model which is Person to Person and Person to Merchant and can be done just by scanning a QR Code as it is done in UPI.

e-rupee 6

The RBI has also specifically clarified that the e-Rupee will not be an incentive-bearing currency and you'll be able to convert it into other forms like deposits with banks.

e-rupee 7

Initially, four major cities have been earmarked for the RBI’s CBDC pilot project and will later extend to other cities in a phased manner.

e-rupee 8

Unlike the decentralized crypto market, the e-rupee will be based on India’s legal tenders but in a digital model which needs crucial monitoring in order to avert its possible misuse for illegal practices.

e-rupee 9

How efficiently will it turn out in a middle-income country as India will only get clear after RBI releases the official figures of its pilot study?