The Introduction of AI-Powered Conversational Payments in India
The governor of India’s central bank, Shaktikanta Das, has proposed the introduction of AI-powered instant “conversational payments.” This technology would allow users to engage in conversation with AI-powered systems and make payments in a safe and secure environment.
Key Points:
- The Reserve Bank of India (RBI) aims to integrate conversational payments through AI into its existing Unified Payments Interface (UPI) system.
- The RBI has announced a feature that would enable users to converse with AI to initiate and complete UPI payments. Initially available in Hindi and English, the central bank plans to expand to more regional languages.
- UPI is a popular instant transaction facility available on mobile devices, with significant usage in India.
- Last month, UPI recorded 9.96 billion transactions, amounting to 15.34 trillion INR ($185.64 billion) in a single month.
- India’s central bank has also launched its own digital currency, the e-rupee, which is currently in the pilot stage.
The Rise of Central Bank Digital Currencies (CBDC)
In addition to UPI and conversational payments, the RBI is joining many other countries in the push for central bank digital currencies (CBDCs). The Bank of International Settlements predicts that nearly two dozen central banks will launch their digital currencies by the end of the decade.
Hot Take:
The introduction of AI-powered conversational payments in India showcases the country’s commitment to digitalization and innovation in the financial sector. By combining the convenience of instant transactions with the power of AI, users can expect a seamless and secure payment experience. As CBDCs gain traction worldwide, the global financial landscape may witness a shift away from traditional currencies like the US dollar.
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