After a month of testing the official CBDC (digital rupee) for inter-bank and institutional transactions throughout India, bankers report that stakeholders have yet to reap any benefits.
Reports from bankers indicate that stakeholders feel they are not gaining from India’s pilot programme to deploy the digital money.
Seven bank employees who talked with Reuters said that using the Reserve Bank of India’s (RBI) e-rupee was nearly equivalent to the internet-based transactions that clients are used to.
The Reserve Bank of India (RBI) created the electronic rupee (e-rupee) as an electronic version of the paper rupee based on the blockchain and distributed ledger technology.
There are a number of attempts at central bank digital currencies (CBDCs) around the world, including the e-rupee, although it has not been widely adopted.
An official of a financial institution that had used commercial e-rupees in the pilot program said that “there is no advantage over internet-based transactions and the lack of netting is actually a big drawback.”
The fact that online rupee transactions still rely on more traditional ways is an additional issue.
The private banker states:
“I don’t think once the pilot is concluded, without any RBI pressure, banks will want to use it.”
As part of the test, the financial institutions are utilizing it to settle their trades in government securities. Bonds worth $26 million were traded using the e-rupee on Thursday, down from daily highs of $5 billion to $6 billion in the first two weeks.
Wholesale CBDC Was Tested On Nov. 1
Notably, the Reserve Bank of India (RBI) chose nine institutions to test the country’s first digital rupee (e-W) that was reported to start from November 1.
As reported by TheCoinRise, the ban on crypto assets in India was enacted after RBI governor Shaktikanta Das expressed concerns about cyber security and unlawful digital actions to the publication Business Today in December of last year.
However, in the beginning this summer, the RBI claimed it would implement the Indian CBDC, also known as the Digital Rupee.