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Here is what you should know about RBI's Central Bank Digital Currency e₹

RBI has begun a trial of its retail central bank digital currency (CBDC), "e₹-R would be in the form of a digital token that represents legal tender & in the same denominations that paper currency & coins are currently issued, transactions could be person-to-person (P2P) or person-to-merchants (P2M). "Payments to merchants can be made using QR codes unlike UPI. CBDCs would be distributed through intermediaries, like banks.

How Is The e₹-R QR Different From UPI QR?

UPI uses balances of bank accounts, while CBDCs are held in a wallet. Blockchain experts believe a digital rupee on UPI rails would ensure zero payment transaction failure, thanks to the on-chain settlement functionality inherent to the design of digital currencies. Moreover CBDC is programmable, It will be easy for govt to ensure that subsidy released has not been siphoned-off and reached to beneficiary

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