Reliance’s Jio Financial Services to Explore Blockchain and CBDCs
Indian conglomerate Reliance’s financial services arm, Jio Financial Services (JFS), is planning to utilize blockchain technology and central bank digital currencies (CBDCs). According to Reliance head Mukesh Ambani, JFS aims to provide a comprehensive payment structure that promotes digital adoption in India. The subsidiary plans to offer innovative features such as blockchain-based platforms and CBDCs, while ensuring the highest standards of security and regulatory compliance.
Partnership with BlackRock
Reliance also announced a partnership with BlackRock, the world’s largest asset manager. Both companies will own a 50% stake in the newly launched entity called Jio BlackRock. This partnership comes as BlackRock received approval from the US Securities and Exchange Commission for a spot Bitcoin exchange-traded fund (ETF).
Reliance Retail Accepting CBDC
Reliance Retail, one of India’s largest retail chains and another subsidiary of Reliance, announced earlier this year that it would accept CBDC or digital rupee as a form of payment. This move aligns with the Reserve Bank of India’s goal of scaling the user base for its digital rupee pilot. The central bank aims to have 1 million CBDC users by the end of the year and plans to integrate CBDC with the unified payments interface (UPI).
Progress of Digital Rupee Pilots
The Reserve Bank of India launched two pilot programs for the digital rupee. The first pilot, targeting the retail segment, began on December 1, 2022, with participation from select customers and merchants. The second pilot, focusing on the wholesale segment for secondary market transaction settlements in government securities, started on November 1, 2022, with involvement from nine banks.
Hot Take
Reliance’s exploration of blockchain technology and CBDCs reflects the growing interest and adoption of these technologies in India. With the partnership with BlackRock and the acceptance of CBDC by Reliance Retail, the country’s digital ecosystem is expanding rapidly. The Reserve Bank of India’s ambitious goal of reaching 1 million CBDC users by the end of the year shows the commitment to driving digital transformation in India’s financial landscape.
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