Digital Rupee RBI | What is ERupi, India is working towards introducing what is known as digital currency the currency will be referred to as the erupy that is intended to make payments much more efficient digital transaction code.
What is Erupi
What is ERupi, China has created its own form of digital currency known as the digital Yuan the Federal Reserve announcing is taking another step at looking at the possibility of issuing a central bank digital currencies foreign on 1st of November 2022. The Reserve Bank of India launched the pilot for something called the central bang back digital rupee which is the Central Bank digital currency of India and this digital rupee is a very very big leap in establishing the Next Generation Financial system for India.
Digital Rupee RBI
RBI Digital Rupee, What is even more important to note is that it’s not just a big deal for India, but even for China France Switzerland and America because of which all of them are in the race to crack the code for the Central Bank digital currency. Just like always while every single News Channel wrote Sensational headlines about cbdc very few of us actually told us what exactly is a central bank digital currency and how will it affect the lives of the common people like you and Maine so in this case today.
Let’s do a deep dive and try to understand what exactly are the Central Bank digital currencies called the digital rupee digital dollar and digital Yuan and how is this system different from all the existing modes of payment. That we already have in our system what are the most important applications of of the Central Bank digital currency and most importantly what are the most authentic sources to give you a deeper understanding of this concept of Central Bank digital currency.
China On Digital Currency
Transact with each other there will be a private clearing system for clearing services and this is very similar to visa and MasterCard for credit cards the second type of model was experimented in 2019 by the monetary authority of Singapore and the Bank of Canada as a part of this project the cbdc networks of Singapore and Canada were linked up by synchronizing payment actions without the need for a trusted third party or a common platform.
Basically a decentralized clearing service and the third model is where we have multiple cbdcs but the central banks would agree on a single room book single set of participation requirements, And build the supporting infrastructure in collaboration now which of these models clear the test of technological feasibility Traders disability and Market liability only time will tell.
The one thing that’s for sure is that the country that cracks this cbdc code first will have a huge upper hand over the rest of the world and the one ahead in the race right now is none other than China. So if China is able to bring down the time of transaction to one to two days and the commissions to one to two percent then China will go on to possess the financial superpower for the next century.