🔥The launch of 🇮🇳 India’s very own indigenous but official crypto and how it fits into a megaverse of digital payments in the worlds fastest growing digital payments market
🥇With India’s leadership in real time payments with UPI and the usage of alternative payments becoming mainstream, does India need another form of digital payment?
💡Lets deep dive-
🎙My view: The launch of India’s own CBDC, e-Rupee, will definitely be a game changer, with slow uptake to begin with but far reaching consequences and impact in the long term specifically with regards to 5 important levers:
1️⃣ Reduction in cost associated with physical cash management
India’s reserve bank and commercial banks face a grand total of Rs. 21,000 crores (US $3.5 billion) in currency operations costs annually.(report by TUFT)
Transition from cash to cashless (via any digital method) is expected to boost India’s economy via this cost saving measure
2️⃣ CBDC-W, CBDC for wholesale, would be utilised for interbank and other wholesale-related transactions, limited to specific financial institutions, significantly reducing settlement risk associated with financial market infrastructures
3️⃣ Wholesale CBDC would support financial innovation enabling India’s surging fintech ecosystem (attracting xx $ USD in 2021) to work with mainstream financial institutions to innovate by establishing alternative platforms, and increasing competition thereby spurring innovation across the board.
4️⃣ Faster, cheaper, more transparent and more inclusive cross-border payment services would deliver widespread benefits for citizens and economies worldwide, supporting economic growth, international trade, global development and financial inclusion. Reducing the chain in international remittances will reduce costs significantly and make global trade more efficient.
5️⃣ Restoring trust of the common citizen in digital assets other than crypto with the central bank at the helm of management and implementation of the e-rupee, which is something no other digital currency or asset can claim.
All of this would contribute to a diversification of national payments and enhance resilience and security in large-value payments.
⁉️ What do you think about the launch of India’s own e-rupee⁉️
📢 Leave a comment and let me know
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