CRED Unveils Beta E-Rupee Wallet Pioneering India's CBDC Revolution

Current Affairs National

Posted by newadmin on 2025-01-30 08:55:39 |

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CRED has become the first fintech company to launch a beta version of its e-rupee wallet, enabling transactions using India’s central bank digital currency (CBDC). This initiative follows the Reserve Bank of India’s proposal to expand access to CBDC-Retail, allowing non-bank payment system operators to facilitate digital currency transactions. The e-rupee wallet is expected to enhance financial inclusion and streamline digital payments across India.

A Central Bank Digital Currency (CBDC) is a digital form of legal tender issued by a country’s central bank, holding the same value as physical currency. Unlike traditional bank deposits, which are liabilities of commercial banks, CBDC is a direct liability on the central bank’s balance sheet. This feature allows individuals to possess digital currency without the need for a bank account. CBDCs can be exchanged for physical cash and are designed to facilitate seamless, secure transactions.

CRED’s e-rupee wallet allows users to transact up to ₹10,000 per transfer, with a daily limit of ₹50,000. The wallet supports zero-cost merchant transactions and provides users with the ability to load funds via UPI, send and receive money from other CBDC wallets, and benefit from enhanced security features. Future updates are expected to introduce programmable payments and PIN-less transactions for amounts below ₹500, making digital payments even more convenient.

Yes Bank serves as the sponsor bank for CRED’s e-rupee wallet, facilitating the issuance of CBDC tokens from the RBI. This collaboration ensures a secure and efficient integration of digital currency within India’s financial ecosystem. Other fintech giants, including PhonePe, Google Pay, and AmazonPay, are also exploring partnerships with the RBI to expand the adoption and accessibility of the e-rupee.

The launch of the e-rupee wallet comes at a time when global approaches to CBDCs vary significantly. In the United States, President Donald Trump has banned the establishment of CBDCs, preventing any government actions aimed at their development or promotion. This decision reflects a cautious stance on digital currencies in contrast to India’s progressive approach.

The introduction of CBDC is expected to revolutionize financial transactions in India by improving transaction efficiency and reducing costs associated with traditional banking systems. The RBI anticipates that CBDC will play a crucial role in boosting financial inclusion and offering users more choices in digital payments, further solidifying India’s position as a leader in digital finance.

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