Reserve Bank of India (RBI) to test digital rupee
The Reserve Bank of India (RBI) is set to launch a digital rupee test in November after talking about the project since February 2022.reportAccording to the RBI, the Reserve Bank of India is expected to launch a digital Rupee test on November 1, 2022.
The upcoming digital rupee will be in a preliminary testing phase, with trials running between banks and major banks in India. The banks participating in the test include Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC.
The use of digital rupees is focused on its use in the secondary market transactions of government securities. The government wants digital rupees to enhance interbank efficiency and reduce RBI transaction fee costs.
The government will also apply CBDCs to financial institutions, including securities transactions or cross-currency payment transactions, known as Wholesale CBDCs. Retail CBDCs will be primarily used by citizens for household use. It can be used in stores like fiat money in digital form.
India plans and decides to build a government CBDC within a short period of time in February 2022 and the government believes digital rupees will help drive the Indian economy.
The government also tightens control over crypto.
However, the Indian government does not yet have legal support for cryptocurrencies. And there has been a 30% tax on crypto holdings and transfers since April. Crypto Taxation Even More Destructive to India’s Crypto Ecosystem Crypto businesses are turning to other countries that are more legal and open to crypto.
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