The Reserve Bank of India (RBI) announced on Friday that limited trial releases of the much-anticipated e-rupee, or central bank digital currency (CBDC), for specified use cases will begin soon.
Will shortly begin the pilot launch of its e-rupee.
However, it will also include some specific use cases in order to strengthen the nation's digital economy. This major move comes despite the recent collapse of the global cryptocurrency market.
CBDC to kill private crypto?
As per reports, the RBI stated in a concept note on Central Bank Digital Currency (CBDC) that the new currency is intended to supplement rather than replace traditional currencies. However, the e-rupee will make payment processes more systematic. It will also help to prevent money laundering.
The CBDC was introduced by the Indian government in the Union Budget address for the fiscal year 2022-23. Meanwhile, the Indian government has taken a hostile stance regarding the usage of cryptocurrency in the country.
In addition to announcing the launch of CBDC in his budget address, the Indian Finance Minister imposed a 30% tax on profits earned from cryptocurrency trading.
Previously, CoinGabbar reported that Rabi Sankar, Deputy Governor of the Reserve Bank of India, issued a strong warning to private cryptocurrencies. He said that “the introduction of CBDC will put an end to the logic of private digital tokens.” Sankar went on to say that “crypto should not be legalized only because it is supported by blockchain or high-tech.”
Will the world accept centralized digital currency?
The digital version of currency notes issued by central banks has become a hot topic among most central banks throughout the world. The RBI stated that it will convey the key aspects of the e-rupee on a regular basis.
As per reports, the CBDC has piqued the interest of more than 60 central banks around the world. While some have already implemented it as a trial program in both the Retail and Wholesale divisions. However, other countries are exploring, testing, or have launched their own CBDC framework.
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