1. Home
  2. digital rupee

digital rupee

India, UAE Collaborate to Boost Cross-Border Central Bank Digital Currency Transactions

India, UAE Collaborate to Boost Cross-Border Central Bank Digital Currency TransactionsIndia’s central bank, the Reserve Bank of India (RBI), and the Central Bank of the United Arab Emirates (UAE) have agreed to collaborate on cross-border central bank digital currency (CBDC) transactions of remittances and trade. The initiative is “expected to reduce costs, increase efficiency of cross border transactions and further the economic ties between India […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

India’s Central Bank Digital Currency Will Act as Alternative to Cryptocurrency, Says RBI Official

India’s Central Bank Digital Currency Will Act as Alternative to Cryptocurrency, Says RBI OfficialAn official of India’s central bank, the Reserve Bank of India (RBI), says that the country’s central bank digital currency (CBDC) will act as an alternative to cryptocurrency. He stressed that the digital rupee must possess all the attributes of physical currency, including anonymity. India’s CBDC Update Reserve Bank of India (RBI) Executive Director Ajay […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

India’s Central Bank Reveals 50,000 Users and 5,000 Merchants Now Using Digital Rupee

India’s Central Bank Reveals 50,000 Users and 5,000 Merchants Now Using Digital RupeeIndia’s central bank, the Reserve Bank of India (RBI), has revealed that 50,000 users and 5,000 merchants are now using its central bank digital currency (CBDC). Digital rupee transactions are currently processed by eight banks, with five more banks set to join the pilot soon, said RBI Deputy Governor T. Rabi Sankar. Digital Rupee Now […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

Crypto could spark the next financial crisis, says India’s RBI head

Reserve Bank of India Governor Shaktikanta Das warned that if crypto becomes regulated and is allowed to grow, it could cause the next financial meltdown.

The governor of the Reserve Bank of India (RBI), Shaktikanta Das, did not mince his words when discussing the crypto sector at a recent conference, asserting that “private” crypto will be behind the next financial crisis.

Speaking at the Business Standard BFSI Insight Summit on Dec. 21, Das suggested that private crypto — those which are not issued by banks or governments — are backed by nothing and are purely tools for speculation.

"They have no underlying value. They have huge inherent risks for our macro economic and financial stability. I am yet to hear any credible argument about what public good or what public purpose it serves," he said.

Shaktikanta Das Speaking at the Summit, Photo: Kamlesh Pednekar

Adding to those sentiments, Das went on to suggest that a full scale crypto ban in India would be the best approach moving forward:

“It [private cryptocurrency trade] is a hundred percent speculative activity, and I would still hold the view that it should be prohibited … because, if it is allowed to grow, if you try to regulate it and allow it to grow, please mark my words, the next financial crisis will come from private cryptocurrencies.”

Highlighting examples of such risk, the RBI head pointed to the recent FTX implosion led by the freshly extradited Sam Bankman Fried.

"I don't think we need to say anything more about our stand after the developments over the last one year including the latest episode around FTX," he said.

Such comments mark another instance in which a key figure in politics or finance has blamed the crypto sector for FTX’s collapse, with many U.S. senators in particular taking the chance to slam digital assets over the past few weeks.

Das, of course, spoke in much more favorable terms of Central Bank Digital Currencies (CBDCs), as he emphasized that the RBI is actively pushing to get its digital rupee off the ground.

"You will see in days to come more and more central banks will embrace digital currencies and India has been in the forefront of the digital revolution in the current century,” he said.

The RBI has historically had a frosty view on crypto and questioned its value on several occasions. Das’ latest comments show that the sentiment is only getting worse, as the bank had previously ranked the sector at the bottom of its list of systemic risks as recently as June.

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

India’s Central Bank Digital Currency Should Be Able to Do Anything Cryptocurrency Can Do With No Risk, Official Claims

India’s Central Bank Digital Currency Should Be Able to Do Anything Cryptocurrency Can Do With No Risk, Official ClaimsAn Indian central bank official claims that if there is anything cryptocurrencies like bitcoin and ether can do, the Reserve Bank of India (RBI) should be able to create a product that will do the same job without the associated risks. “This is essentially what we are doing in the CBDC experiments,” he stressed. RBI […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

RBI Begins First Retail Digital Rupee Pilot in 13 Indian Cities With 8 Banks

RBI Begins First Retail Digital Rupee Pilot in 13 Indian Cities With 8 BanksIndia’s central bank, the Reserve Bank of India (RBI), is launching its first retail digital rupee pilot on Dec. 1 with the participation of eight banks. The pilot will start in four cities and then expand to cover nine more cities across India. RBI Picks 8 Banks, 13 Cities to Test Retail Digital Currency The […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

India’s Central Bank RBI Publishes Digital Currency Details — Confirms Digital Rupee Pilot Launching ‘Soon’

India’s Central Bank RBI Publishes Digital Currency Details — Confirms Digital Rupee Pilot Launching ‘Soon’India’s central bank, the Reserve Bank of India (RBI), says it will soon commence “limited pilot launches” of the country’s digital currency (digital rupee) for specific use cases. The central bank explained that “multiple technological options shall be tested and based on the outcomes, the final architecture shall be decided.” RBI Prepares to Launch Digital […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

India’s central bank outlines digital rupee CBDC plans

India's Reserve Bank outlined the pros and cons of a digital rupee as it looks to raise awareness around its CBDC project.

The Reserve Bank of India (RBI) has outlined the proposed features and reasoning behind its in-development central bank digital currency (CBDC) in a 51-page note published on Oct. 7.

The country’s central bank is looking to raise awareness of CBDCs, which are being developed by a number of central banks around the world, and to clearly define the objectives and choices as well as the potential positive and negative elements of introducing a digital rupee in India.

The document summarizes the key motivations for the issuance of an Indian CBDC, highlighting trust, safety, liquidity as well as settlement finality and integrity as key components of a sovereign digital currency.

A primary motivator for issuing a CBDC in India is to reduce the operational costs involved in managing physical cash in the country. The RBI also touts improved financial inclusion in addition to an increasingly resilient, efficient and innovative payments system.

Improved cross-border payments and settlements are also underlined through the promise of an offline feature for the CBDC, which would be beneficial in remote locations and in areas without a stable electricity supply or mobile network access.

The RBI has long held public blockchains and cryptocurrencies at arm's length, with the document outlining its continued view that cryptocurrencies pose a significant risk to Indian consumers due to market volatility.

“These digital assets undermine India’s financial and macroeconomic stability because of their negative consequences for the financial sector.”

The RBI also highlighted its concern that the continued proliferation of cryptocurrencies would diminish its ability to regulate monetary policy and the monetary system, which the central bank holds to b a threat to financial stability in India.

A digital rupee CBDC is being touted to have the same benefits as public cryptocurrencies while “ensuring consumer protection” by avoiding what it described as “damaging social and economic consequences.”

The note goes on to outline the differences between a retail and wholesale CBDC, with the former serving the public sector while the latter would have restricted access catered toward financial institutions. The RBI hinted that there may be merit in introducing both forms into the Indian marketplace.

The Indian central bank also touched on the possibility of direct and indirect issuance and management. Direct issuance would see the RBI responsible for managing the entire system, while the indirect model would involve the use of intermediaries like banks and other payment service providers.

The RBI also noted that a token-based CBDC would be preferred for retail use given its similarities in use to physical cash. Account-based CBDC issuance would be considered for wholesale users.

The document also considered the potential infrastructure underpinning the digital rupee, highlighting conventional, centrally controlled databases or distributed ledger (blockchain) technology as the two options on the table:

“While crystallising the design choices in the initial stages, the technological considerations may be kept flexible and open-ended in order to incorporate the changing needs based on the evolution of the technological aspects of CBDCs.”

The note also touches on the role of physical currency in providing anonymity, universality and finality. Given that digital transactions would leave a trail, the degree of anonymity provided is still being assessed while the RBI suggested that reasonable anonymity for small-value transactions like physical cash may be a “desirable option” for a retail CBDC.

The ongoing development of a digital rupee will likely involve further stakeholder engagement and iterative design to produce a CBDC that suits a broad range of use cases. The Indian central bank also stressed its intent for the CBDC to complement current forms of money and provide additional digital payment avenues to users.

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

India’s Central Bank RBI Starts Digital Currency Pilot With 4 Banks: Report

India’s Central Bank RBI Starts Digital Currency Pilot With 4 Banks: ReportIndia’s central bank, the Reserve Bank of India (RBI), has reportedly asked four banks to pilot the country’s central bank digital currency (CBDC) ahead of its public launch. RBI to Pilot India’s CBDC With Public-Sector Banks The Reserve Bank of India (RBI), the country’s central bank, has reportedly asked four public-sector banks to trial India’s […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap

Nepal Prepares to Issue Digital Currency, Drafts Necessary Amendments

Nepal Prepares to Issue Digital Currency, Drafts Necessary AmendmentsA task force in Nepal has proposed legal changes allowing the country’s central bank to issue its own digital currency. The move comes after a study indicated that such an initiative is feasible and recommended certain provisions that would authorize the regulator to proceed with its realization. Nepal Central Bank Prepares Legal Ground for National […]

AI-Focused Altcoin Rallies After Coinbase Places Crypto Project on Listing Roadmap