CMP Gadgets

Tag: finance

  • RBI: News

    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.

  • UPI One World Wallet Service

    UPI One World wallet service has been launched by the National Payments Corporation of India (NPCI) for non-resident Indians (NRIs) and international travellers visiting the country. The service was first announced last year during the G20 summit which India hosted. It will allow travellers who do not have an Indian bank account to access the Unified Payments Interface (UPI) system and make payments using it. The initiative was launched by NPCI in collaboration with IDFC First Bank and Transcorp International Limited under the guidance of the Reserve Bank of India (RBI).

    NPCI said that travellers visiting India will be able to make secure digital payments and transact with merchants and vendors across the country with the UPI One World wallet. The service will allow travellers to eliminate the need to carry large amounts of cash or face the hassle of multiple foreign exchange transactions.

  • Peer-to-Peer (P2P) Trading

    When two individuals or entities decide to exchange any asset directly between each other, this process is referred to as peer-to-peer (P2P) trading. In these transactions, the need for a mediator is eliminated, which reduces the fee of this mediator, hence making the process of transactions more cost effective. Before cryptocurrencies were introduced, computers used the P2P method to process file sharing. Now, crypto assets can be exchanged directly between two parties – bringing the element of decentralization to financial transactions.

    Satoshi Nakamoto, the anonymous creator of Bitcoin had intended to reduce the reliance on centralised organisations like banks – to process financial transactions between two or more entities. To do so, Nakamoto created Bitcoin as the world’s first cryptocurrency, that could process financial transactions and get them validated on encrypted blockchains rather than from a centralised intermediate. P2P crypto exchanges are more private than traditional transactions and are largely anonymous.

    To complete a pure P2P crypto transaction, one party enters the wallet details of the other one to process the transaction. In order to simplify this process even further alongside adding a layer of security to these transactions – crypto exchanges came into the picture. It is, however, noteworthy that despite smartly worded advertisements, crypto exchanges do not perform P2P transactions. These firms fall under the regulations of the countries they are operating in.