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The Reserve Bank of India (RBI) has released a Concept Note on Central Bank Digital Currency (CBDC) to create awareness about CBDCs and provide details about the planned features of the Digital Rupee (e₹). The note outlines the objectives, design choices, benefits, and risks of issuing a CBDC in India, and explains the RBI’s approach toward its introduction.
Key considerations discussed in the Concept Note include technology and design choices, potential use cases of the Digital Rupee, issuance mechanisms, and implications for the banking system, monetary policy, and financial stability. Privacy aspects related to CBDC have also been analysed.
RBI will soon begin pilot launches of e₹ for specific use cases, and as these pilots expand, the Reserve Bank will continue to provide updates on the features and benefits of the Digital Rupee.
[RBI]