The Reserve Bank of India (RBI) is launching a wholesale pilot program involving its Central Bank Digital Currency (CBDC) also dubbed the Digital Rupee.
According to a Press Release published by the apex bank, this first pilot phase is centered on the use of the Digital Rupee for the settlement of secondary market transactions in government securities.
The RBI wants to see if the potential legal tender can reduce some of the drudgeries that are being experienced in the inter-bank market and make it generally more efficient.
“Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk,” the RBI said in the issued release, setting the focus for future pilots by asserting that “other wholesale transactions and cross-border payments will be the focus of future pilots, based on the learnings from this…
