The Reserve Bank of India (RBI) released its latest report detailing the development and roadmap ahead for the digital finance industry. Among several innovations that the RBI praised in this report, the mention of the eRupee central bank digital currency (CBDC) did not go unnoticed. Built like crypto but regulated by the RBI, India’s eRupee CBDC is currently under its advanced trial phase. The country’s apex bank, at this point, is looking at the eRupee to become a tool to improve India’s cross border transactions and take the INR to an international level.
The RBI has compiled its views on the ongoing trends that have been observed in the fintech sector. The report on currency and finance 2023-2024 addresses the eRupee, and says that the launch of the CBDC is aimed at brightening India’s projection of soft power.
“Cross border digital trade policies and digitalization, along with measures aimed at internationalizing the Indian Rupee (INR) and the CBDC project, would play a crucial role in harnessing new opportunities, supporting seamless international transactions, reducing foreign exchange risks and managing global liquidity,” the report noted.