The chief general manager at the fintech department of RBI, Anuj Ranjan, at an event organized by the Indian Merchants’ Chamber said that the eRupee cannot be converted into cash and vice-versa yet. In the future, RBI would allow the conversion of digital currency into cash. He added further that the eRupee would be issued by the RBI against bank deposits only.
Progress
This pilot project is seeing satisfactory progress within a closed-user group. The number of users is increasing gradually as well. Since this is a part of the central bank’s liabilities, Ranjan said the RBI would bear any cost related to eRupee. Yes Bank has launched a digital wallet app for its customers on Google Play Store and Apple App Store to let people transact using eRupee. Natural Ice Cream, Reliance Retail, and some oil marketing companies have also signed up to accept eRupee as payments.
Digital currencies in other countries
Apart from India, Nigeria, China, and the Bahamas have rolled out digital currencies. Japan and Sweden would be launching their digital currencies soon. The USA is doing its research and conducting trials of different technologies to enable a form of digital currency of its own. However, Jerome Powell, Fed chair, indicated that the central bank of the USA does not have any plan to create one as of now. Moreover, it would not do anything without intimation and permission from Congress.
Debate
Other countries are debating on the utility, necessity, pros, and cons of digital currencies. Two types of CBDC are there- one is for the central banks to send money to commercial banks and the other for use by the citizens like fiat income. The digital Yuan of China can be used by regular people using their well-linked and well-established digital platforms like WeChat Pay and Alipay. India’s attempt at using eRupee for transactions without using regular banks is equally daring.
