India’s digital rupee trial raises hopes of cheaper digital transactions

The RBI concept note said a digital rupee could provide citizens with “a convenient, electronic form of central bank money". PHOTO: REUTERS
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NEW DELHI - India’s digital rupee, trials of which were launched on Nov 1, is aimed at transforming the financial system into one that is more efficient and cheaper, reducing dependence on cash and offering an alternative to cryptocurrency.

Still, analysts said that any large-scale adoption of the digital currency would depend on multiple factors, from increasing digital literacy to ensuring anonymity in transactions as is the case with physical notes, and convincing people to use the e-rupee amid multiple digital payment options, including e-wallets.

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