RBI’s First Pilot for Retail Digital Rupee to Go Live on December 1
The Reserve Bank of India (RBI) is expanding the use cases for its digital currency CBDC. From December 1, testing of Indian CBDC for commercial purposes will begin in selected regions of the country. Built on the blockchain, the digital rupee is a virtual currency of India that aims to speed up digital transactions and add a layer of security to it as well. As part of its retail testing, the CBDC will be used by dealers and customers, handpicked under the supervision of the RBI.
As part of the tests, the CBDC will be given to the testers in a digital wallet, which is supported by the national banks participating in these tests. The wallet will work with smartphones, PCs, and tablets.
“Transactions can be both Person to Person (P2P) and Person to Merchant (P2M). Payments to merchants can be made using QR codes displayed at merchant locations. Ie ₹-R will provide features of virtual currency like trust, security and payment terminal. As in the case of cash, it will not earn interest and can be converted into other currencies, such as bank deposits,” RBI said. said in an official statement.
CBDCs and cryptocurrencies are both built on the blockchain, which is a form of distributed ledger technology. The difference that distinguishes CBDCs is that they are issued and regulated by central banks. Cryptocurrencies on the other hand, are not controlled by central banks and are not primarily regulated.
Earlier this month, RBI governor Shaktikanta Das called the launch of India’s CBDC pilot a historic moment in the history of the country’s currency.
In an interview with Gadgets 360, Alankar Saxena, Chief Technical Officer and Founder of Mudrex recently commented that this CBDC will help Indians to enter a transparent cashless financial system.
Japan, Russia, Jamaica, and China are among other nations working on their own CBDCs.
In May, Jamaica launched its Jam-Dex CBDC and also announced incentives for the first 100,000 users.
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