The Reserve Bank of India has published a detailed white paper about the possibilities, benefits and risks of India’s digital currency, called e₹. Here is everything that you should know at the moment.
On October 7, 2022, the Reserve Bank Of India released a detailed concept note that puts forward the “objectives, choices, benefits and risks” related to legalising the Central Bank Digital Currency (CBDC). India’s digital currency will be referred to as e₹ or digital Rupee. It comes as a critical development in developing a digital version of the Indian currency. While you might come across several rumours or misinformation about the e₹, here is everything you should know.
The concept note defined CBDC or e₹ as “new variants of central bank money different from physical cash or central bank reserve/settlement accounts.” When the central bank releases CBDC, it will be considered equivalent to the physical sovereign currency. It should be accepted as a payment medium on par with legal tender.
