CBDC recently launched in India is testing offline function

It is reported that Ajay Kumar Choudhary, Executive Director of the Reserve Bank of India (RBI), revealed that India’s recently launched internal central bank digital currency (CBDC) e-rupi is now testing the offline function. （cointelegraph）

Interpretation of this information:

The news of India testing its internal central bank digital currency, e-rupi, offline is a significant development in the realm of digital currencies. The e-rupi was launched by the Indian government recently and has since garnered a lot of attention as a transformative digital currency that could benefit millions of Indians.

The development of e-rupi is part of India’s evolving fintech landscape, which is looking to embrace digital technologies to foster financial inclusion across the country. The digital currency is designed to be a one-time use prepaid voucher that operates on the UPI (Unified Payment Interface) system, allowing users to make contactless payments without exchanging cash. This is a significant advancement as it will enable users to make transactions without requiring a bank account or a digital wallet.

The recent announcement that e-rupi is being tested offline brings a host of benefits to users, primarily for those living in remote locations or areas with poor connectivity. The offline function, when fully developed, will allow the digital currency to be used without the need for an internet connection. This is particularly relevant in India, which has a diverse population, including millions who live in remote areas with limited access to the internet.

Another critical advantage of the e-rupi offline function is security. Offline transactions are generally considered more secure than online transactions, as they are less prone to hacking attempts and other online security threats. With a digital currency like e-rupi, the ability to make transactions offline can help improve user confidence in the digital currency, which is essential to its success.

In conclusion, the development of e-rupi and its recent testing of the offline function is an exciting development in India’s fintech landscape. As the country seeks to expand its digital infrastructure, the use of digital currencies like e-rupi will grow in popularity, especially with the ability to make offline transactions. With the e-rupi, India is taking a significant step towards creating a safer, more inclusive, and cashless economy.