Home News India’s Reserve Bank outlines CBDC plans for Digital Rupee

India’s Reserve Bank outlines CBDC plans for Digital Rupee

India's Reserve Bank outlines CBDC plans for Digital Rupee
India's Reserve Bank outlines CBDC plans for Digital Rupee

Reserve Bank of India has outlined the advantages and disadvantages of a digital rupee as they continue to explore the coin project CBDC.

The RBI released a 51-page note on the features of its in-development of CBDC. The central bank has outlined the proposed features and reasoning for developing its digital currency in the letters.

This document highlights what essential factors led to the issuance of an Indian CBDC. It discusses different aspects, such as trust and safety, that are critical to mention.

The primary driver for the issuance of a CBDC in India is significantly reducing the costs associated with managing physical cash in the country.

RBI plans CBDC for Digital Rupee

The RBI has also shared that digital currency will offer greater financial inclusion and efficient, innovative, and resilient payment services.

CBDC will improve foreign payments as well as faster settlements. With the help of CBDC, users can make payments on the go without having to go online.

The note outlines the differences between a retail and wholesale CBDC, with the former being available to the general public while the latter is tailored to financial institutions.

The RBI has hinted that both coins might be necessary to fulfill the needs of the Indian market.

The RBI has also said that token-based CBDCs are best if used as cash – probably because they’re so similar to physical money in so many ways.

The future development of the Indian digital rupee will likely involve further collaboration with stakeholders to ensure that CBDC design features can suit a diverse range of use cases.

The Indian central bank also emphasizes how their CBDC should complement traditional currencies and provide more options to users in terms of digital payments.

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