All posts tagged: cbdc

eRupee Recorded Rs. 5.7 Crore in Transactions in First Four Months of Retail Trials, Says RBI: Report

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eRupee, the Indian central bank digital currency (CBDC), was reportedly used to process transactions worth Rs. 5.70 crore in the first four months since it entered the retail trials phase. The information was disclosed by the Reserve Bank of India (RBI) as it responded to an RTI query initiated by Moneycontrol. The RBI launched eRupee retail trials in select locations across the country on December 1, 2022. “As per the data published in the balance sheet of the Reserve Bank of India as on March 31, 2023, the E-Rupee issued for CBDC (Retail) at Rs 5.70 crore,” the central bank reportedly said responding to Moneycontrol’s RTI query last month. CBDCs are an electronic, blockchain-based form of a sovereign currency. The use of CBDCs instead of cash would not only reduce reliance on paper notes, but also ensure that all transactions are recorded on a distributed ledger, safeguarding the information against tampering. A total of thirteen banks, including Canara Bank and the State Bank of India (SBI), are assisting the RBI in conducting these trials. These …

India’s eRupee CBDC to Get Offline Payments Feature, Programmability Tweaks: RBI Governor

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The Reserve Bank of India (RBI) is looking to adopt offline strategies to ensure that the eRupee CBDC enters the financial system of rural and remote parts of India. RBI governor Shaktikanta Das reportedly stated that the central bank plans to experiment with offline solutions to drive the adoption of CBDC in those parts of India that are not as well connected to the Internet as developed cities. These plans have reportedly been under discussions since March last year. Das disclosed these details on Thursday, concluding the RBI-hosted three-day Monetary Policy Committee (MPC) meeting. Offline solutions for CBDC adoption will soon enter the test phase for hilly and rural regions of the country. These programmability-based solutions will include both, proximity and non-proximity ones, Das said, without disclosing any further details. “It is proposed to introduce an offline functionality in CBDC-R (Retail) for enabling transactions in areas with poor or limited internet connectivity,” The RBI governor stated on Thursday. The RBI plans to let merchants and corporates modify the programmability of the CBDC in order to expand …

NFT-Supporter Trump Vouches to Squash CBDC Creation in US if Re-Elected President

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The US, in recent years, has emerged as one of the most crypto-friendly nations in the world with more investors and merchants experimenting with digital assets there. At a time when the nation is conducting research and studies around the need and use-cases of the blockchain-based digital dollar CBDC, former President Donald Trump has ignited debate around the subject after his recent speech at New Hampshire, US. CBDCs are essentially the digital representations of fiat currencies and as a concept, the idea of CBDCs has gained major traction in several parts of the world including India. Trump reportedly vouched to block the creation of a CBDC in the US, calling it a ‘dangerous threat to freedom’. A video shared by Coinpedia on X shows Trump making anti-CBDC remarks earlier this week. During New Hampshire campaign, Donald Trump pledges to ban central bank digital currency, citing it as a dangerous threat. Trump, joined by ex-candidate Vivek Ramaswamy, vows to prevent federal control over citizens’ money. The former president argues that CBDC creation poses… pic.twitter.com/wI8EPXXKvT — Coinpedia …

E-Rupee CBDC Said to Hit RBI Target of 1 Million Daily Transactions by End of 2023

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Indian banks disbursed some employee benefits through the digital rupee in December, helping the Reserve Bank of India meet its target of one million daily transactions by end-2023, three sources directly familiar with the development said. The central bank digital currency (CBDC), called the e-rupee, has been devised as a digital alternative to physical cash and has been built using distributed-ledger technology. The RBI started its e-rupee pilot in December 2022 but transactions averaged only 25,000 a day by the end of October, even though its use case was significantly broadened by linking it to the popular United Payments Interface (UPI), a framework that facilitates peer-to-peer money transfer via mobile apps. However, last month some large private and state-run lenders disbursed amounts related to employee benefit schemes directly to employees’ CBDC wallets, instead of their salary accounts, the first source familiar with the pilot said. These lenders included HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank, and IDFC First Bank the second source said. The RBI expects non-financial firms to follow suit as well, …

Turkey Joins China, India in Marking CBDC Milestones on Wider Scale Before 2022 Wraps Up

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The year 2022, while not having been positively eventful for the crypto sector, did emerge as a milestone year for central bank digital currencies (CBDCs). Turkey has become the latest member of the CBDC club, that has touched a significant point in its CBDC trials. The Central Bank of the Republic of Turkey (CBRT), that started its CBDC trials earlier this year, has completed its first phase before the year of 2022 ends. Turkey’s CBDC is named the Digital Turkish Lira. For now, Turkey has been conducting closed circuit pilot tests of its CBDC. In the first three months of 2023, the CBRT plans to take this CBDC trial to select banks and fintech companies, which will continue till the end of next year. “Studies on the legal aspects of the Digital Turkish Lira demonstrate that digital identification is of critical importance for the project. Therefore, studies on the economic and legal framework of the Digital Turkish Lira as well as its technological requirements will be prioritised throughout 2023,” the Turkish central bank said in …

China Set to Launch State-Backed NFT Marketplace on Special ‘Cultural Protection’ Chain

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China, that is rather infamous for keeping an extremely restrictive approach towards the crypto sector, is taking small steps into exploring the digital assets sector. The country is geared-up to launch an official, state-backed NFT marketplace, that would let Chinese NFT traders to dabble in the space, but under the oversight of China’s government. A launch ceremony for this marketplace has been slated for January 1. It will be held in China’s capital city of Beijing at a time when the country is yet again, riddled with the COVID-19 crisis. Called the ‘China Digital Asset Trading Platform’, the initiative is aimed at creating a safe ecosystem for the secondary sales of NFTs, which if not monitored, can dangerously expose buyers to hack attacks and scams. Three state-owned entities — China Technology Exchange, China Cultural Relics Exchange Center, and Huaban Digital Copyright Service Center Co., Ltd — have collectively created this NFT trading platforms, keeping it in alignment with China’s laws and regulations, China’s Sina News said in its report. Instead of using an existing blockchain …

China Pushes CBDC as ‘Good Luck’ Gifts Ahead of New Year Celebrations

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China, which has been accelerating its efforts to drive the adoption of its CBDC, has undertaken a new experiment, coloured in traditions, to get more people to use the e-CNY. The Chinese authorities have introduced a feature for existing CBDC users that would enable them to send money to their friends and family as ‘red packets’. Considered as a symbol of ‘good luck’, the ‘red packets’ — also called the ‘Hongbao’ — are used for presenting people with money as a gesture of luck. Unlike most parts of the world, China celebrates its New Year on January 22. The country, hence, has released this CBDC promotional strategy keeping the margin of a month in advance. China’s dedicated app for the e-CNY CBDC, will let users send red packet to one person at a time. Users also have an option to establish a ‘lucky draw’ that could earn the nominees a random amount from a pool of funds. WeChat Pay and Alipay — other online payment service providers in China — are also offering digital red …

Unregulated Crypto Sector Cause for Concern? RBI Governor’s Prediction About Financial Crisis Disappoints Industry

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Reserve Bank of India governor Shaktikanta Das said this week that allowing private cryptocurrencies to grow would lead to the next financial crisis. He also reiterated the central bank’s call for a total ban, claiming that such instruments had no underlying value and were speculative at best. “After the development of the past one year, including the latest episode surrounding FTX, I don’t think we need to say anything more. Time has proven that crypto is worth what it’s worth today,” Das said at while speaking at the ‘BFSI Insight Summit’. “Change in value in any so-called product is the function of the market. But unlike any other asset or product, our main concern with crypto is that it doesn’t have any underlying whatsoever. I think crypto or private cryptocurrency is a fashionable way of describing what is otherwise a 100% speculative activity. I would still hold the view that it should be prohibited. If you try to regulate it and allow it to grow, please mark my words, the next financial crisis will come …

RBI Governor Says Next Financial Crisis Will Come from Private Cryptocurrencies

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Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday warned that the next financial crisis will come from private cryptocurrencies adding that he still holds the view that cryptocurrencies should be prohibited. The governor of the country’s central bank also added that cryptocurrencies have no underlying value and pose risks for macroeconomic and financial stability. Earlier this month, a top RBI official stated that transactions via central bank digital currencies (CBDC) would remain anonymous “to a certain degree”, adding that technology and legal provisions could be explored to ensure that anonymity. India started the pilot project for its digital currency, or e-rupee, from November 1, when it was opened for an initial trial. Then only being used by banks for settlements with each other, the scope of the project was expanded to include consumer and retailer-led transactions from December 1. The RBI has not yet clarified the degree to which CBDC transactions will be anonymous, but the income tax department allows cash transactions up to a certain limit to be carried out without furnishing any …

Kazakhstan’s CBDC to See Calculated, Phased Roll-Out Between 2023-2025: Report

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The experiments with Central Bank Digital Currencies (CBDCs) have picked-up pace around the world, and Kazakhstan is no different. The central Asian nation, which is a hotspot for crypto miners, has decided to take slow steps in devising and rolling-out its CBDC — that essentially is Kazakhstan’s fiat currency in a digital avatar on blockchain. At present, the unnamed CBDC is under trial and has entered the second phase of testing under the oversight of the National Bank of Kazakhstan (NBK). The fresh updates on Kazakhstan’s CBDC plans were revealed by the representatives from the NBK, Cointelegraph said in its report. The nation is looking to base its CBDC on the BNB Chain, which is the blockchain network developed by Binance crypto exchange. Changpeng Zhao, the CEO of Binance, had confirmed the development earlier in October. With the launch of its CBDC, Kazakhstan is exploring the possibilities of expanding financial inclusion for its citizens. In addition, the nation also wants to elevate its game in digitising its economy to stabilise its global standing. “Taking into …