Topic: Digital rupee
The digital rupee would make the interbank market more efficient, the RBI said Monday, when it announced the pilot for CBDC in the wholesale segment.
RBI should be mindful of four key aspects as it lays the foundation for a digital rupee architecture.
The currency is likely to have stable value, limiting appeal as an asset. It may be safer than holding cash, but tech, connectivity will pose issues, if meant for wide use by households.
The ‘digital rupee’ could be India’s chance to move away from being an economy with one of the highest cash to GDP ratios.
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