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India's Central Bank Launches Central Bank Digital Rupee

The @RBI just launched a new central bank digital currency (CBDC) after announcing it in February 🇮🇳

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On November 1st, the @centralbank_in released the digital rupee pilot for the wholesale segment. According to @Reuters the pilot included nine domestically operating banks including the @TheOfficialSBI @bankofbaroda @UnionBankTweets @HDFC_Bank and others.

The major application for India's CBDC pilot will be to settle secondary market transactions in government securities. The digital rupee is projected to improve interbank market efficiency by cutting settlement transaction costs.

There will be two kinds of digital rupees distributed: 1. The wholesale segment is used by financial organizations for interbank transactions. 2. The retail segment is used for general circulation by households and businesses.

The RBI also intends to debut the digital rupee for the retail segment in selected regions within a month. Nirmala Sitharaman, India's Finance Minister, indicated that the digital rupee would benefit the Indian economy in the future.

Unfortunately, the Indian government intends to make cryptocurrency less appealing to local investors by putting a 30% tax on digital asset ownership, which will have a negative impact on the country's crypto ecosystem.

Source: Cointelegraph; Yahoo Finance Photo: Avinash Kumar

This post is based on this twitter thread.

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