eRupee: Digital Revolution in India
India’s Central Bank Digital Currency – eRupee
The Reserve Bank of India (RBI) has identified the potential of its Central Bank Digital Currency (CBDC) named eRupee in the context of transforming international transactions and enhancing India’s position in the global financial landscape. Currently, eRupee is undergoing an advanced phase of testing.
The Role of eRupee in Strengthening India’s Position
The RBI has emphasized the role of eRupee in strengthening India’s “soft power” through increased digitalization, the development of digital trade policies, and the internationalization of the Indian Rupee (INR) and the CBDC project. The central bank is confident that integrating CBDC into the financial system will contribute to enhancing data security, expanding the availability of payment services, and supporting the development of digital skills in the country.
eRupee Trials and CBDC Development in India
Since May 2024, India has joined the ranks of 36 countries worldwide conducting trials of their respective CBDCs. Central banks, such as the RBI, believe in the potential of central bank-issued and regulated digital currencies, based on advanced blockchain technology.
eRupee Testing in India
In June 2024, eRupee was undergoing retail testing involving 5 million users and 420,000 merchants. eRupee is being tested in both retail and wholesale sectors, in peer-to-peer (P2P) transactions as well as peer-to-merchant (P2M) transactions.
Government-backed Digital Cash
eRupee is government-backed digital cash, issued by the RBI and based on blockchain technology. Currently being tested in India for daily payments and social programs, eRupee has the potential to bring about a digital revolution in the Indian financial system.
