Connect with us

News

Will India’s e-RUPI adoption pave the way for CBDC

Published

on

Source: Pixabay


Prime Minister of India, Narendra Modi launched e-RUPI, a digital voucher program in a bid to boost the country’s fintech sector. The Indian government has been making efforts to digitize payments and e-RUPI will go a long way in achieving this. However, with e-RUPI already present, what role will a central bank digital currency [CBDC] play?

e-RUPI vs CBDC

India witnessed exponential growth in the digital currency market over the past couple of years. The onset of the pandemic could have been a major factor in this boost. Data suggested, approximately $8 billion was moved over 80 million transactions in the financial year 2021. Cryptocurrency exchanges in the country like Coinswitch Kuber were now being valued at over $500 million.

India will be adopting an evolved digital money transactional setup through e-RUPI. Nevertheless, the concept behind promoting e-RUPI and CBDC have been overlapping. According to reports, the Prime Minister stated

“[…]e-RUPI will guarantee that the money is used for offering benefits and assistance. He stated that technology used to be considered the realm of the wealthy, and there was little room for it in a developing country like India, but times have changed. Technology has become accessible to almost all Indians. He added that the government regards technology as a means to assist the poor, and for their advancement.”

While the government has not yet dismissed cryptocurrencies, they were more favorable to the idea of a CBDC, and as per the latest update from the deputy governor of the central bank of India, they will be revealing its CBDC model by December 2021.

Interestingly, the crypto enthusiasts in the country saw this as a chance to prove that crypto assets and measures to promote the digital ecosystem can coexist. Exchanges seem hopeful that the launch of e-RUPI could make acceptance of digital currencies easier in the future.

With an unbanked population of 190 million, India is at the cusp of carrying a large-scale technological adoption through e-RUPI. But will the country share the same enthusiasm for a CBDC? Only time will predict.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.