The CBDC pilot programme at India’s central bank began earlier today.
The RBI has released the digital rupee, commonly known as the e-rupee.
Although cryptocurrency is not permitted on Indian soil, Central Bank Digital Currency (CBDC) has been met with official support. The Reserve Bank of India (RBI) said in October that on November 1st, it will begin a wholesale CBDC trial. In keeping with its promise, the RBI has released the digital rupee, commonly known as the e-rupee.
The CBDC pilot programme at India’s central bank began earlier today. As a result, the asset might be used by a select group of institutions to settle secondary market trades in government securities. The country’s CBDC was primarily intended for this purpose.
CBDC Frontrunner
HDFC Bank, ICICI Bank Ltd., Kotak Mahindra Bank, State Bank of India, Bank of Baroda, Union Bank of India, Yes Bank, IDFC First Bank, and HSBC Holdings Plc. (the Indian unit) were all chosen to participate in the pilot.
Clearing Corp. of India Ltd. figures indicate that 7.38 percent of debt due in 2027 and 7.26 percent of bonds due in 2032 were among the first to be sold using the new currency.
Indian Finance Minister Nirmala Sitharaman initially mentioned plans to introduce the digital rupee in February 2022, citing the currency’s potential to improve the country’s economy. However, the asset’s actual rollout was broken down into three stages to prevent any disruptions to the preexisting financial system.
While the pilot version of the CBDC became accessible today, the public rollout is anticipated to occur sometime this month. Although cryptocurrency is still mostly unregulated throughout the nation, CBDC has recently emerged as a clear frontrunner.