{"id":14975,"date":"2022-11-30T05:29:23","date_gmt":"2022-11-30T05:29:23","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/rbi-begins-first-retail-digital-rupee-pilot-in-13-indian-cities-with-8-banks-regulation-bitcoin-news\/"},"modified":"2022-11-30T05:29:23","modified_gmt":"2022-11-30T05:29:23","slug":"rbi-begins-first-retail-digital-rupee-pilot-in-13-indian-cities-with-8-banks-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/rbi-begins-first-retail-digital-rupee-pilot-in-13-indian-cities-with-8-banks-regulation-bitcoin-news\/","title":{"rendered":"RBI Begins First Retail Digital Rupee Pilot in 13 Indian Cities With 8 Banks \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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India\u2019s 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. <\/strong><\/p>\n

RBI Picks 8 Banks, 13 Cities to Test Retail Digital Currency<\/h2>\n

The Reserve Bank of India (RBI) announced Tuesday that \u201cthe first pilot for retail digital rupee (e\u20b9-R)\u201d will launch on Dec. 1. This announcement followed the RBI\u2019s wholesale central bank digital currency (CBDC) pilot which began<\/a> on Nov. 1.<\/p>\n

Eight banks will participate in the retail digital currency pilot in two phases. State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank in four cities across India will participate in the first phase. Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank will participate in the second phase.<\/p>\n

The Indian central bank detailed:<\/p>\n

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The pilot would initially cover four cities, viz., Mumbai, New Delhi, Bengaluru, and Bhubaneswar, and later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla.<\/p>\n<\/blockquote>\n

\u201cThe scope of [the] pilot may be expanded gradually to include more banks, users, and locations as needed,\u201d the RBI clarified.<\/p>\n

About RBI\u2019s Retail Digital Rupee<\/h2>\n

The Indian central bank explained:<\/p>\n

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The e\u20b9-R would be in the form of a digital token that represents legal tender.<\/p>\n<\/blockquote>\n

The digital rupee will be issued in the same denominations that paper currency and coins are currently issued, the central bank noted, adding that it would be distributed through intermediaries, such as banks.<\/p>\n

\u201cUsers will be able to transact with e\u20b9-R through a digital wallet offered by the participating banks and stored on mobile phones \/ devices,\u201d the central bank detailed, noting that transactions can be person-to-person (P2P) or person-to-merchant (P2M). Merchants will display QR codes that can be used to make payments.<\/p>\n

\u201cThe e\u20b9-R would offer features of physical cash like trust, safety, and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks,\u201d the central bank continued, elaborating:<\/p>\n

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The pilot will test the robustness of the entire process of digital rupee creation, distribution, and retail usage in real time. Different features and applications of the e\u20b9-R token and architecture will be tested in future pilots, based on the learnings from this pilot.<\/p>\n<\/blockquote>\n

Do you think India\u2019s central bank should issue a digital rupee? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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