The RBI is India’s central banking institution, which controls the monetary policy of the Indian rupee. Last week, it rolled out its CBDC, also known as Digital Rupee, e-Rupee or e₹.
The State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC are the nine banks that are part of the pilot project.
As per CBDC, the digital rupee would be legal tender in a digital form of fiat currency, which can be understood as the Indian rupee. The Digital Rupee is a currency issued by central banks responsible for governing and managing the asset. It is also exchangeable one-to-one at par with the fiat currency.
What comes to mind is whether the digital rupee is similar to crypto currency. The differentiator is that the digital rupee is issued by RBI and has government support, unlike crypto currencies. As indicated by RBI, CBDC is an electronic form of sovereign currency and has the advantages...