How to use CBDC: Launched on a pilot basis by the Reserve Bank of India (RBI) in October last year, CBDC (Central Bank Digital Currency) -(Digital Rupee (e₹))- is the legal tender issued by a central bank in a digital form. It is akin to sovereign paper currency but takes a different form, exchangeable at par with the existing currency, and shall be accepted as a medium of payment, legal tender, and a safe store of value.
CBDC is a digital or virtual currency but it is not comparable to the private virtual currencies that have mushroomed over the last decade.
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Reliance Retail first to accept CBDC for sales
On February 2, Reliance Retail announced that it has begun accepting retail payments via the Indian government’s Digital Rupee across its stores in the country. Reliance Retail launched the first in-store acceptance of the RBI-created and Blockchain-based CBDC at its gourmet food store Freshpik in Mumbai.
Reliance Retail has collaborated with ICICI Bank, Kotak Mahindra Bank, and fintech Innoviti Technologies to launch in-store support for the digital rupee.
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How to use CBDC?
Step 1: Download bank’s CBDC app
Step 2: Load money using UPI or bank account
Step 3: Choose from denominations ranging from g 50 paise to Rs 2000
Step 4: Load as much money as you need into your digital rupee wallet
Step 5: Pay for your purchase through QR code
Types of CBDC
CBDC can be classified into two broad types- general purpose or Retail (CBDC-R) and Wholesale (CBDC-W). Retail CBDC (e₹-R) would be potentially available for use by all, including private sector, nonfinancial consumers and businesses while Wholesale CBDC (e₹-W) is designed for restricted access to select financial institutions.
