India’s digital currency, the digital rupee, achieved over a million transactions in just one day, with the assistance of banks.

The retail CBDC pilot is currently operating in over 15 cities, with the involvement of more than a dozen banks.

India’s Digital Rupee Achieves One Million Transactions in a Day, Thanks to Banks’ Employees

📅 Date Posted: December 29, 2023

🏦 Key Players: Reserve Bank of India (RBI), HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank, IDFC First Bank, Union Bank of India

💼 Milestone: 1 million transactions in a day on December 27, 2023

India’s central bank digital currency (CBDC), the digital rupee, recently hit a major milestone, exceeding one million transactions in a single day. The Reserve Bank of India (RBI) Governor, Shaktikanta Das, shared this exciting news in a letter to RBI staff. However, it’s important to note that this achievement was influenced by the participation of retail banks’ own employees.

The RBI’s goal had been to reach one million transactions per day by the end of 2023, as previously announced. While it remains uncertain whether the digital rupee consistently maintains this daily transaction volume, the fact that it achieved it at least once is an impressive feat.

Retail and Wholesale CBDC Pilots

The RBI is currently conducting both retail and wholesale CBDC pilots. The retail CBDC pilot is active in over 15 cities, with several banks involved in the process. The pilot officially began on December 1, 2022, but the RBI has not yet provided a timeline for the full-scale rollout of the digital rupee.

India is already a cashless society to a significant extent, thanks to the Unified Payments Interface (UPI). Consequently, the digital rupee has faced challenges in attaining high transaction volumes, averaging only around 25,000 transactions per day. However, the RBI has been actively working to increase these numbers over the past few months.

The recent achievement of one million transactions in a day was made possible by various government-owned and private sector banks. These banks chose to deposit their employees’ salaries and benefits into their CBDC wallets instead of using traditional fiat currency. Among the notable banks involved in this initiative are HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank, IDFC First Bank, and Union Bank of India.

Encouraging CBDC Wallet Usage among Employees

Banks have actively encouraged their staff members to transact using the digital currency and urged them to register on the digital rupee app. Several banks began by crediting employees’ newspaper allowances directly to their CBDC wallets, signaling the start of a larger movement toward a digital future.

While some issues have arisen due to this push, overall, the response has been positive. The All India Union Bank Employees Association’s general secretary, N. Shankar, stated that if banks offer CBDC services to customers, it is only natural that they extend these services to their employees as well. He emphasized that increasing wallet account transactions among staff members is one way to achieve the desired outcome.

Looking Ahead: Unpacking India’s CBDC Pilots

As India prepares for the introduction of the digital rupee, it is crucial to explore and understand the country’s CBDC pilots fully. These pilots provide valuable insights into the future of digital currencies in India, their potential impact on traditional financial systems, and the opportunities they bring. Stay tuned for our upcoming article, “Unpacking India’s CBDC Pilots as Country Prepares for Digital Rupee,” which will delve deeper into this topic.

📚 Reference List:

  1. IRS Rules Require Reporting of Data for 10K+ Crypto Transactions in 2024
  2. Nigeria’s Crypto Ban Hindered eNaira Adoption Despite High Global Ranking
  3. Eastern Caribbean Central Bank Looking to Retail DCash with 20 Vendors
  4. Bitcoin Price Jumps 7% to $46,000 Amid BTC ETF Developments
  5. Indonesian Police Shut Down 10 Bitcoin Mining Operations
  6. Unpacking India’s CBDC Pilots as Country Prepares for Digital Rupee

🖼️ Image Source: (Please insert the image here along with its original information)

💬 Are you excited about the progress of the digital rupee? Share your thoughts with us! And don’t forget to spread the word by sharing this article on your social media platforms. Let’s together explore the fascinating world of blockchain technology and digital currencies! 💪🌐✨

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