RBI to soon launch CBDC pilot project; blockchain world high on spirits

economictimes.indiatimes.com:

RBI) on Friday released its concept note for central bank digital currency (CBDC), which was announced by the Finance Minister Nirmal Sitharaman in Parliament during her budget speech in February. The RBI clarified that the concept note aims to create awareness about CBDC and features of the digital rupee (e₹). It explains the objectives, choices, benefits, risks of CBDCs in India. It discusses technology and design choices, possible uses of Digital Rupee, issuance mechanisms and examines the implications of introduction of CBDC on the banking system, monetary policy, financial stability, and privacy issues. The RBI will soon commence pilot launches of CBDC for specific use cases. As the extent and scope of such pilot launches expand, RBI will continue to communicate about the specific features and benefits of CBDC, from time to time.

Did you Know?

SAP has launched a new enterprise on the Metaverse with the aim of accelerating cloud adoption among Indian firms. The interactive and immersive ‘cloud on wheels’ platform will enable customers to experience the full range of SAP’s offerings and reimagine processes for improved business outcomes.

The digital rupee or CBDC of India will be legal tender issued by the RBI and will be treated as equivalent to sovereign currency and is exchangeable one-to-one at par with the fiat currency. It will be in alignment with RBI monetary policy and will appear as a liability in the central lender's balance sheet. CBDC is a fungible legal tender for which holders need not have a bank account. CBDC will be a medium of payment, a legal tender and a safe store value for all citizens, businesses, governments and others, which can get it converted in the bank money or cash. CBDC