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The Indian government is leading with wait and watch approach towards the use of virtual digital assets while citizens are looking for some <a href="https://news.todayq.com/india-crypto-tax-outlook-rules-regulations-its-implications/" target="_blank" rel="noopener noreferrer nofollow">relaxation in the tax rates</a>. Amid this situation, Indian digital currency, or E-Rupee, reportedly reached a new milestone in the last month of 2023. India’s e-rupee hits big 
According to reports, <a href="https://news.todayq.com/india-crypto-rules-nation-to-evaluate-on-country-specific-risks/" target="_blank" rel="noopener noreferrer nofollow">India’s digital currency</a> transactions surpassed one million per day in December, meeting the Reserve Bank of India’s (RBI) target for the end of 2023. The central bank’s digital currency, the e-rupee, was launched as a digital alternative to physical cash, utilizing distributed ledger technology.&nbsp;
Although the pilot started in December 2022 the daily transactions were initially averaged only 25,000 by October. However, recent developments indicate a substantial increase, attributed to major banks disbursing employee benefits directly to CBDC wallets. The list of participating banks includes HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank, and IDFC First Bank.
The move to disburse employee benefits through the e-rupee marks a pivotal step in promoting the adoption of central bank digital currencies (CBDCs) in India. While the user base has grown to approximately 4 million users, up from 3 million in December, the RBI anticipates further growth as non-financial firms are expected to join the initiative. The broader application of CBDCs is seen as a strategic move to enhance financial transactions and inclusion.
Globally, countries such as China, France, and Ghana are in the pilot stages of their CBDC projects. Despite some countries’ challenges, India’s incentive-driven approach includes offering rewards and discounts for e-rupee transactions. What’s next for digital currency? 
The report added that the analysts and industry experts believe compensating employees through CBDCs is a positive step that could pave the way for additional use cases. This can be done for toll tax collections, further encouraging adoption.
While the RBI continues to explore the potential of CBDCs, including their application in the inter-bank call market introduced in October, challenges remain in expanding the use cases of wholesale CBDCs. Nevertheless, Governor Das expressed confidence in the RBI’s ability to effectively navigate challenges in 2023, emphasizing the success of the Unified Payments Interface (UPI) as a model followed internationally.
On the monetary policy front, the RBI has demonstrated its ability to balance inflation moderation with a focus on economic growth, underscoring the importance of timely and decisive actions. As the adoption of digital currencies continues to evolve, the RBI encourages its staff to find ways to enhance the efficacy and quality of service delivery in the ever-changing financial landscape.
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India ready for crypto bull run? E-Rupee hits 1 million daily transactions mark

Todayq News

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