India To Pilot launch E-Rupee; Will It Affect Crypto Market?

The Reserve Bank of India (RBI) announced that it will soon be commencing the pilot launch of its e-rupee. However, it will carry some specific use cases in order to boost the nation’s digital economy. This big decision has landed amid the recent downfall of the global crypto market.

CBDC to kill private crypto?

As per reports, RBI in a concept note on Central Bank Digital Currency (CBDC) mentioned that this currency is aimed to complement rather than replace. However, the e-rupee will make payment systems more systematic. While it will also keep a check on money laundering.

The Indian government in the Union Budget speech had announced the launch of the CBDC from the fiscal year 2022-23. Meanwhile, the Indian authorities have opted for a negative approach toward the use of crypto in the country.

With announcing the launch of CBDC in the budget speech, the Indian Finance Minister also imposed a 30% tax on the profit made from crypto trading.

Earlier, Coingape reported that Rabi Sankar, Deputy Governor of the RBI issued a clear warning for the private cryptos. He suggested that the launch of CBDC can banish the logic of private digital tokens. Sankar added mentioned that crypto shouldn’t only be permitted only because it is backed by blockchain or hi-tech.

Will the globe adopt the centralised digital currency?

The digital form of currency notes issued by a central has become a talking point among most central banks over the globe. RBI mentioned it will convey the salient features of the e-rupee from time to time.

As per reports, more than 60 central banks around the globe have shown a keen interest in the CBDC. While some have already implemented it under a pilot program under both the Retail and Wholesale sections. However, some nations are researching, testing, or have launched their own framework around CBDC.