The e-rupee will yield demand-side learnings4 min read 13 Dec 2022, 10:48 PM IST
The current design of India’s CBDC is appropriately conservative but the idea has plenty of potential that could be explored.
Money issued by central banks has changed form over modern history—from coins made with precious metals to paper money that could be converted on demand into gold, to inconvertible fiat money that is only backed by the word of a sovereign government. The fourth big transformation is upon us. Central banks across the world have begun experimenting with various forms of digital money. India has also taken its first tentative step. The Reserve Bank of India (RBI) has launched two variants of a digital rupee on an experimental basis—for wholesale transactions between banks and for retail transactions within the private sector.
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