Reliance Industries chairman Mukesh Ambani announced that Jio Financial Services, a division of the conglomerate, may start offering blockchain-related products and a digital rupee. Ambani emphasized that these products would adhere to high security and regulatory standards to protect customer transaction data. The Reserve Bank of India (RBI) has already developed a central bank digital currency (CBDC) called e-rupee, using blockchain technology. As of June 2023, there were 1.3 million customers and 0.3 million merchants using CBDC. The RBI conducted experiments on both wholesale and retail versions of e-rupee last year. The wholesale pilot, e₹-W, aimed to improve efficiency in the inter-bank market, while the retail pilot, e₹-R, offered features of physical cash. However, bankers expressed concerns about the benefits of CBDCs when compared to existing banking transactions and the Unified Payments Interface (UPI).
– Reliance Industries’ Jio Financial Services may offer blockchain-related products and a digital rupee.
– The products will prioritize security, regulatory compliance, and customer data protection.
– The RBI has developed a CBDC called e-rupee, using blockchain technology.
– As of June 2023, there were 1.3 million customers and 0.3 million merchants using CBDC.
– The RBI conducted experiments on wholesale and retail versions of e-rupee, aiming to improve inter-bank market efficiency and offer cash-like features.
Hot Take: Reliance Industries’ move to offer blockchain-related products and a digital rupee through Jio Financial Services shows the growing interest in cryptocurrencies and blockchain technology in India. It also highlights the potential for CBDCs to transform financial transactions and improve market efficiency. However, concerns raised by bankers about the benefits of CBDCs compared to existing digital payment systems like UPI indicate the need for further development and education in this field.
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