The Reserve Bank of India introduces the CBDC, a digital rupee.

The Reserve Bank of India introduces the CBDC, a digital rupee.

The Reserve Bank of India introduces the CBDC, a digital rupee.

The Reserve Bank of India (RBI) today announced the pilot programme for its central bank digital currency (CBDC), also known as the Digital Rupee and serving as the reserve bank of India’s digital tender. Although it will not be a decentralised asset like cryptocurrencies, it is in fact a digital currency.

The central banks in charge of directing and overseeing the asset will issue the digital rupee. It may be easily convertible into other currencies, accepted as payment, and seen as a secure place to deposit money.

The official launch for the general public is scheduled for February 1 and will provide a new option and an alternative to using banknotes to make purchases.

The RBI has consistently rejected the notion of embracing cryptocurrencies and introduced the digital rupee as a recognised form of digital currency. Proassetz Exchange’s founder and director, Manoj Dalmia, said:

“In that it will be backed by the government, the digital rupee will vary from Bitcoin, Ethereum, and other cryptocurrencies. Second, the digital rupee will be similar to holding a physical rupee equivalent since it has intrinsic value due to government backing.