E-rupee: Maximize its appeal
India’s central bank digital currency (CBDC) has had a test run since 2022 and it’s heartening to see it evolve. The e-rupee may soon be made accessible even offline, which will enhance its ease of use.
For an edge over UPI bank-to-bank transfers, the e-rupee could also be made programmable, so that a user can set instructions for it to move as desired. For this digital money to replace cash, however, it would need anonymity of use.
Transactions could be erased from the record by technology, as Reserve Bank of India (RBI) governor Shaktikanta Das said on Monday. It would be better, though, if such a provision has legislative backing.
While RBI could go ahead and make its CBDC as appealing as it can, its anonymity would be more convincing as a promise if users are assured that it has the approval of elected representatives. As the e-rupee is still a work-in-progress, this is a good time for the country to debate its design.
Should RBI aim for global success? To make headway, it must combine new utilities enabled by technology with the most attractive features of a classic currency. Purchasing-power retention is important, no doubt, but fully assured privacy could also help it succeed.
. Read more on livemint.com
