CBDC is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different. E-rupee cannot be classified as a cryptocurrency. RBI’s objective with the e-rupee is to provide just another alternative medium of making digital payments. While RBI has ambitious and noble plans for the roll out of the digital rupee, technological, cyber security and concerns surrounding adoption by the Indian population remain prevalent. RBI must monitor the technical hurdles and new developments that may take place and resolve them to create a more robust digital payment system for India.

But for the moment we can at least agree on this: “CBDCs is likely to be in the arsenal of every central bank going forward. As is said, every idea will have to wait for its time. Perhaps the time for CBDCs is nigh.”

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