e₹—The digital currency in India: Challenges and prospects

Abstract

The Reserve Bank of India (RBI) has recently launched the country’s first pilot project for the digital currency known as the digital rupee or e-Rupee (e^₹). The launch of the digital rupee represents a significant advancement in the “Digital India” revolution. It will be a fantastic opportunity for India since it might make conducting business easier while enhancing the security and resilience of the overall payments system. Digital currency attempts to rapidly progress monetary policy to disrupt physical money, lower the cost of financial transactions, and reshape how the money will circulate. Although the effects of digital currency cannot be foreseen, it is extremely important to thoroughly research digital currency and its effects on the operational stage. The development of a digital currency infrastructure has some challenges in terms of performance, scalability, and different usage scenarios. The article clarifies what e^₹ is. How does it work? What makes it different from cryptocurrencies? What are the major challenges and prospects for it in India?