India's first experience with a digital rupee was on Tuesday. Naturally, it was a careful situation. The Reserve Bank of India (RBI) started a trial run of a wholesale version with nine banks that would be expected to utilise it to settle their mutual trades of government securities.
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| Source:Eenadu |
India's first experience with a digital rupee was on Tuesday. Naturally, it was a careful situation. The Reserve Bank of India (RBI) started a trial run of a wholesale version with nine banks that would be expected to utilise it to settle their mutual trades of government securities. The efficiency brought about by lower transaction costs was put to the test here. E-rupee payments don't require a backup system or collateral to address settlement risk, which arises in any market where players may fail to uphold their half of a contract because they are like cash payments in that they are a direct RBI responsibility. The concept of a digital money is admirable in and of itself. The names RBI is using, though, are perplexing.
An "e ₹-W "is an awkward name for the thing being tested. What makes it different from a "e-R "Most people are likely to be confused by, a retail-level version that will be tested out later this month. Branding advice recommends keeping things simple for any novel idea. RBI should introduce a straightforward e-rupee (e-). This should be a token-based e-currency designed for retail use, whose security model is transparent to all users of money. Give the wholesale account-based e-currency a name that is noticeably different. Please avoid any confusion.