RBI: Tuesday marked the beginning of a trial program for India’s digital currency, which nine institutions are now able to utilise to settle secondary-market transactions in government securities.
The Reserve Bank of India had stated in a statement Monday that the e-rupee is scheduled to be test released for retail use in a few specific areas and users within a month.
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Countries have been conducting experiments in this area
A day after Singapore’s monetary authority announced testing of a digital version of its local dollar, the restricted roll-out was announced. While many others are looking into measures to address the threat that private digital currencies pose to financial stability, the central banks of China, the euro area, the Bahamas, and other countries have been conducting experiments in this area.
The RBI previously stated in a concept note that it “would allow the users the same experience of dealing in currency in digital form, without any dangers associated with private cryptocurrencies. While offering the advantages of virtual currencies, central bank digital currencies will also provide consumer protection by avoiding the detrimental social and economic implications of private virtual currencies.”
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Banks that will operate the pilot in the initial phase
State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank Ltd., Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and the Indian division of HSBC Holdings Plc are the banks that will operate the pilot in the initial phase.
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