RBI launches the first pilot of Digital Rupee (e₹) for the wholesale segment: All details here
<img src="" title="RBI launches the first pilot of Digital Rupee (e₹) for the wholesale segment: All details here" /> RBI has launched the first pilot of its Digital Rupee (e₹) in India. The pilot is for the wholesale segment (inter-bank market) and will be used for settling secondary-market transactions in government securities. RBI believes that the e-Rupee’s usage will make the inter-bank market more efficient. Digital Rupee (e₹) trials begin for the wholesale segment On the first day, bonds worth crores were traded using this new e₹. There are nine government and private banks that participated in the trade. State Bank of India, Union Bank of India, Bank of Baroda, Kotak Mahindra Bank, HDFC Bank, ICICI Bank, IDFC Bank, HSBC Bank, and Yes Bank are the identified banks that participated. This pilot will help RBI learn more about the Digital Rupee and possibly do a roll-out for the retail segment. As promised, the rollout for the retail segment is planned within a month in select locations in closed user groups having merchants and the customer. The retail segment rollout of the Digital Rupee will come under CBDC-R (Central Bank Digital Currency), whereas, the pilot that was launched today comes under CBDC-W for the wholesale segment. Upon successful pilot, a full rollout is expected to happen to ensure full transparency while maintaining lower operational costs. Digital Rupee, which is symbolized as e₹, is a digital currency, but it’s nothing like Cryptocurrency. Cryptocurrency is a decentralized digital asset that operates on blockchain technology. Digital Rupee, on the other hand, is fiat money in digital form. It has its own intrinsic value in the sense that having a digital rupee will be equivalent to having a physical rupee. That said, it won’t be a replacement, but rather, an alternative to physical currency. “The e₹ will provide an additional option to the currently available forms of money. It is substantially not different from banknotes, but being digital it is likely to be easier, faster, and cheaper. It also has the transactional benefits of other forms of digital money,” stated the concept note on Central Bank Digital Currency by RBI. The post RBI launches the first pilot of Digital Rupee (e₹) for the wholesale segment: All details here appeared first on BGR India.
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RBI has launched the first pilot of its Digital Rupee (e₹) in India. The pilot is for the wholesale segment (inter-bank market) and will be used for settling secondary-market transactions in government securities. RBI believes that the e-Rupee’s usage will make the inter-bank market more efficient.
Digital Rupee (e₹) trials begin for the wholesale segment
On the first day, bonds worth crores were traded using this new e₹. There are nine government and private banks that participated in the trade. State Bank of India, Union Bank of India, Bank of Baroda, Kotak Mahindra Bank, HDFC Bank, ICICI Bank, IDFC Bank, HSBC Bank, and Yes Bank are the identified banks that participated.
This pilot will help RBI learn more about the Digital Rupee and possibly do a roll-out for the retail segment. As promised, the rollout for the retail segment is planned within a month in select locations in closed user groups having merchants and the customer.
The retail segment rollout of the Digital Rupee will come under CBDC-R (Central Bank Digital Currency), whereas, the pilot that was launched today comes under CBDC-W for the wholesale segment.
Upon successful pilot, a full rollout is expected to happen to ensure full transparency while maintaining lower operational costs.
Digital Rupee, which is symbolized as e₹, is a digital currency, but it’s nothing like Cryptocurrency. Cryptocurrency is a decentralized digital asset that operates on blockchain technology. Digital Rupee, on the other hand, is fiat money in digital form.
It has its own intrinsic value in the sense that having a digital rupee will be equivalent to having a physical rupee. That said, it won’t be a replacement, but rather, an alternative to physical currency.
“The e₹ will provide an additional option to the currently available forms of money. It is substantially not different from banknotes, but being digital it is likely to be easier, faster, and cheaper. It also has the transactional benefits of other forms of digital money,” stated the concept note on Central Bank Digital Currency by RBI.
The post RBI launches the first pilot of Digital Rupee (e₹) for the wholesale segment: All details here appeared first on BGR India.
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