Mumbai: The Reserve Bank of India has said that the first pilot digital currency of the central bank digital currency will be issued on Tuesday. It will be used in transactions of government securities. This will be for wholesale business only.
The Reserve Bank informed on Monday that State Bank of India (SBI), Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC will participate in the pilot. RBI said that within a month there are plans to launch a digital rupee for the retail segment as well. It will first be launched for select users in select locations. These users will include customers and merchants.
RBI said on October 7 will start the pilot project soon
Regarding bringing the digital rupee to the market, RBI had said on 7 October that it would soon start a pilot project for this. The use of digital rupees has been restricted during the pilot project. The results of the pilot project will be analyzed by the central bank. After that, it will be widely brought into the market. The digital rupee will reduce the transaction cost of banks.
People are preferring digital transactions
Vipin Kumar, CEO, of Technoloader Pvt Ltd said that launching a digital rupee using blockchain is not a difficult task for the government. People in India are doing digital transactions or payments in the form of UPI IDs and bar codes. At present, many people are giving more importance to digital transactions.
The transaction can be done easily
The digital currency created with blockchain technology will be transferred from one digital wallet to another like other crypto assets. According to Kunal Jagdale, Founder, BitsAir Exchange, to transfer money, one has to punch in the wallet address of the recipient. It will be as good as today’s UPI transactions, where the value of money is transferred from one’s wallet or bank account to another. He said that we should wait for the SOP on Digital Rupee in which it will be launched.
