After launching a first CBDC test for corporates, the Central Bank of India launches its test for citizens. This new experiment will start in 4 cities of the country.
4 cities to test the Indian government’s CBDC
The CBDCR (e₹-R) is the retail version of the digital rupee, so it has the same functions as fiat currency. The Central Bank issues CBDCR and then distributes it to intermediaries (ed. note: commercial banks in the country). As a result, the e-Rupee can be used for digital payments or for bank deposits instead of cash.
In a December 1ᵉʳ statement, the Reserve Bank of India (BRI) announced the rollout of the pilot project in the following cities:
- New Delhi.
4 local banks (ICICI Bank,YES Bank, State Bank of India and IDFC First Bank) will accompany the project and issue the digital rupee.
Other cities and partners are to be expected!
More cities are expected to join the program soon:
- Gangtok ;
- Guwahati ;
- Hyderabad ;
- Kochi ;
- Lucknow ;
Again, banks (Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank) will ensure the smooth running of the program!
But, so what is the E-Rupee?
What is the E-Rupee for retail?
As we said before, it is a CBDC issued by the RBI. Like all other digital currencies, the E-Rupee will be stored in a digital wallet and payments will be made between individuals or to merchants thanks to private and public keys. Nevertheless, this one is to be differentiated from the other CBDC specific to certain financial institutions, launched on November 1ᵉʳ by the Indian government.
Bitcoin and cryptocurrencies have always been an enemy to defeat for the government of India. After multiple defeats, the E-Roupie appears to be a way to embrace cryptocurrencies to better stifle them later! In Bitcoin we trust.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.