This new feature allows users to transact using the Indian Central Bank's Digital Currency (CBDC), aimed at enhancing security for users of the Indian rupee.
The digital rupee will be integrated as a wallet-based payment solution, complementing Bybit's existing payment methods, which include bank transfers, third-party services like Paytm, and India’s Unified Payments Interface (UPI), managed by the Reserve Bank of India (RBI).
The addition of the digital rupee offers users a way to reduce the risk of their bank accounts being targeted by cybercriminals. Currently, the digital rupee is utilised on Bybit for peer-to-peer crypto transactions. The e-rupee, a pilot project launched in December 2022 following the introduction of its wholesale counterpart, continues to be developed. In March 2023, the RBI and the United Arab Emirates Central Bank agreed on a CBDC bridge between their respective jurisdictions.
The digital rupee's deployment on a crypto exchange is notable amid ongoing efforts to improve its functionality, including plans to add offline capabilities. The programmable e-rupee, introduced earlier in 2024, has seen initial use in the reimbursement of carbon credits to farmers by IndusInd Bank. However, the adoption of the digital rupee remains limited, with some criticism regarding its usability.
The digital rupee is designed to improve the efficiency and security of financial transactions while promoting broader financial inclusion. As a CBDC, it aims to streamline payment processes, reduce transaction times, and bolster security against fraud. One of its key features is programmability, which enables the implementation of smart contracts and automated processes. This programmability allows for more sophisticated financial operations, such as automated compliance with regulatory requirements and real-time settlement of transactions, potentially transforming how financial interactions are conducted and expanding access to banking services across diverse populations.
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