India explores offline functionality of CBDCs: RBI executive director

India recently launched central bank digital currency (CBDC)he e-rubyit is now being tested for offline functionality, revealed Ajay Kumar Choudhary, chief executive of the Reserve Bank of India (RBI).

The RBI, the central bank and regulator of India, launched the wholesale segment pilot for digital rupee on 1 November 2022and 50,000 onboarded users and 5,000 merchants for real world testing. As of February 25, approximately $134 million (Rs 1,100 crore) in 800,000 transactions have been completed through wholesale CBDCs.

Building on this progress, RBI's Choudhary said that RBI is looking into the offline functionality of CBDC. Speaking to CNBC-TV18, he fixed RBI is evaluating the potential of CBDC for cross-border transactions and linking with legacy systems of other countries. He added:

“We eagerly await the participation of the private sector and fintechs in CBDC. We will see their contribution, especially in offline and cross-border CBDC transactions.”

Furthermore, speaking on behalf of RBI, Choudhary said that CBDC would soon become the medium of exchange and needs all the features of physical currency, including anonymity.

India's motivation for launching CBDC was to improve financial inclusion in the region and spearhead the digital economy. Choudhary also told CNBC-TV18 that CBDC will eventually act as a replacement for cryptocurrencies.

Related: Crypto Ads And Sponsors Banned From Women's Cricket League In India

On February 21, India's national payments network, the Unified Payments Interface (UPI), expanded its services to Singapore.

UPI goes global!

Since UPI was introduced as a payment system in India, it has revolutionized the lives of Indians, but in fact, India's digital payment system is becoming more and more attractive globally and is being adopted by others. countries.#indiafirst #RelationsIndiaSingapore pic.twitter.com/55sGh5bzbZ

—MyGovIndia (@mygovindia) February 21, 2023

The UPI-PayNow integration allows citizens of India and Singapore to send money across borders quickly.

Initially, four major Indian banks (State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank) will facilitate outgoing remittances. Axis Bank and DBS Bank India will facilitate incoming remittances. DBS Bank and Liquid Group of Singapore will provide the service to users in the region.