A recent report from the Reserve Bank of India suggests the creation of a regulated digital currency similar to cryptocurrency called the eRupee central bank digital currency.
As per Gadgets360, the most recent report from the Reserve Bank of India (RBI) outlines the progress and future direction of the digital finance sector. One of the innovations highlighted by the RBI in the report was the eRupee central bank digital currency (CBDC), which received special attention.
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This photograph taken on December 7, 2022 shows the bitcoin logo on a smart phone in a greenhouse heated with bitcoin miners near Amsterdam.
India's eRupee CBDC, structured similar to cryptocurrency, is now in the final stages of testing while being overseen by the RBI. The central bank of the country is currently considering the eRupee as a means to enhance India's overseas transactions and elevate the INR to a global standard.
The RBI has gathered its opinions on the current trends seen in the fintech industry. The 2023-2024 currency and finance report discusses the eRupee, highlighting that the introduction of the CBDC is intended to enhance India's soft power image.
The RBI is currently looking at options for allowing foreign direct investments (FDIs) to directly enter India's fintech industry.
Therefore, the central bank plans to increase the use of fintech innovations like the eRupee. The RBI anticipates that incorporating the CBDC into India's financial infrastructure will enhance data security, improve e-payment services availability, and enhance local digital skills.
In its report, the central bank mentioned that in May 2024, India was one of 36 countries around the world testing their own CBDCs.
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CBDC Explainer
Central Bank Digital Currencies such as the eRupee are digital portrayals of traditional currencies like the Rupee. Instead of traditional servers, they are backed by blockchain networks. Every transaction done with a CBDC creates an immutable record on the blockchain, enhancing transparency in the financial system.
The implementation of CBDCs can assist global banks in decreasing their reliance on physical currency, as well as modernizing the financial industry.
Recent Crypto Updates
Regarding other crypto announcements, traders can benefit from the decrease in value of a cryptocurrency with the introduction of Asia's first-ever inverse bitcoin exchange-traded fund (ETF) by Hong Kong's CSOP Asset Management.
It is expected that the ETF will take advantage of the volatile cryptocurrency market trading to see an upsurge in demand. Bitcoin had a challenging second quarter, losing over 12% of its value after the launch of the first wave of spot cryptocurrency ETFs in Hong Kong in April.
The company states that among all major global assets, bitcoin has demonstrated the most significant volatility in the past decade. In 2023, it performed better than crude oil and the Nasdaq 100 with a volatility of 38.3%.
The increase in bitcoin's value is thought to be caused by the rising belief that Donald Trump, the Republican candidate, will win the White House again.
Following Monday's U.S. data, it slightly increased and was being exchanged for about $67,400. President Joe Biden's withdrawal from the presidential race. As per the company's statement, CSOP's inverse bitcoin product aims to achieve a return similar to the S&P Bitcoin Futures Index's inverse daily performance.
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