Bitrabo Editorial
Leading internet and retail giants such as Google, Amazon, and Walmart have expressed a strong interest in participating in India’s Central Bank Digital Currency (CBDC) pilot program, also known as the e-rupee, as per the Reserve Bank of India (RBI).
According to a report from Reuters, this recent development indicates the growing appeal of digital currencies and the potential for these corporations to leverage their extensive payment networks to promote the adoption of e-rupee.
The e-rupee trial was initially limited to banks starting in December 2022. The RBI has now extended eligibility to payment companies, allowing services like PhonePe, Google Pay, and Amazon Pay to join.
These companies collectively manage over 85% of digital currency payments in India through the Unified Payments Interface (UPI), handling nearly 13 billion transactions monthly.
Enhancing Participation in the Digital Currency Pilot
Expanding the testing program aligns with RBI’s strategy to boost e-rupee adoption. The aim of this digital currency initiative is to enhance the safety and efficiency of financial transactions by digitizing them.
This measure also aims to ensure the strength and reliability of the digital currency before widespread implementation, thereby instilling public trust in the new system.
Expanding the pilot enables the RBI to gather more data and insights on e-rupee use cases, enhancing payment system efficiency and promoting broader financial inclusion across the country.
Leading Indian banks like State Bank of India, ICICI Bank, and HDFC Bank are involved in the pilot program. By integrating key payment systems, the central bank anticipates a surge in transaction volumes and increased user engagement with digital currency.
Digital wallets allow users to hold and transfer e-rupees digitally like physical currency. The pilot project commenced in New Delhi and Mumbai and later expanded to Hyderabad and Ahmedabad, with the RBI planning a gradual expansion to more financial institutions and locations.
Impact of Tech Giants’ Involvement
While digital currency transactions initially peaked at over a million per day, they have since declined to an average of 100,000 to 200,000 daily. The inclusion of renowned payment companies by the RBI is expected to rekindle interest in digital currency and drive increased user interaction.
The RBI has stated that the pilot program will run for several years and currently has no immediate plans for large-scale e-rupee deployment. This cautious approach ensures thorough testing and refinement of digital currency before broader adoption.
Featured image from Live Science, chart from TradingView