India’s Reserve Bank to launch ‘E-Rupee,’ alternate to cryptocurrency

The Reserve Bank of India recently proposed the launch of the ‘E-Rupee,’ a digital token of the Indian rupee. The bank is also considering implementing its own version of CBDC.

The cryptocurrency and blockchain market in India is on a massive boom as many exchanges and firms are slowly expanding their services into the country, despite the government’s crypto ban.

Now, India’s major bank has proposed they will be testing phases with a limited pilot of the digitalized version of the country’s national currency as an additional form of fiat money.

The bank will apply for a central bank digital currency or CBDC, like many countries, which will be the alternative for cryptocurrencies that don’t guarantee consumer protection to the public.

“CBDCs will provide the public with benefits of virtual currencies… by avoiding the damaging social and economic consequences of private virtual currencies,” the RBI plan reads.

According to the RBI plan, the CBDCs will help the Indian government implement policies to regulate the virtual economy and save the overall economy from collapsing due to crypto.

“Currently, we are at the forefront of a watershed movement in the evolution of currency that will decisively change the very nature of money and its functions,” the paper reads.

If India decides to launch E-rupee, it will become one of the few countries like the USA to release a national currency in a virtual version.

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