In a recent video conference, Indian Prime Minister Narendra Modi officially launched e-RUPI, India’s first digital payment solution.
India’s first digital currency is a new payment tool that functions as an e-voucher based on a QR code or SMS string delivered to mobile phones.
What exactly is an e-RUPI?
The new technology makes use of the UPI (United Payments Interface) protocol, a payment system developed by the National Payment Corporation of India that allows you to make instant real-time payments.
One of the main use cases for the newly delivered e-RUPI digital currency, according to the prime minister’s office, is the “leak-proof delivery” of various welfare services.
Is there any connection between e-RUPI and blockchain?
Despite the fact that e-RUPI is referred to as a digital currency, it has nothing to do with blockchain technology because digital currencies are strictly tailored to the country’s main fiat currency and cannot be used without it. Because e-RUPI functions as an e-voucher, the only way to issue it is with fiat currency. Furthermore, it is overseen by the Reserve Bank of India.
In addition to the e-RUPI, the central bank intends to create a CBDC (Central Bank Digital Currency), which may be directly tailored to blockchain technology. T Rabi Sankar, deputy governor of the Reserve Bank of India:
[CBDC are] desirable not only for the benefits they bring to payment systems, but they may also be required to protect the general public in an environment rife with volatile private VCs.
However, before creating a fully functional blockchain-based digital currency, the country must go through the process of legally overhauling the currently developing and operational virtual currencies and blockchain companies.