Soon there will be money in India with unique and controversial features.
The Reserve Bank of India (RBI) announced on Thursday plans to make its digital currency programmable and enable it to be used offline, without an internet connection. The current pilot project of the Central Bank's retail digital currency (CBDC), launched at the end of 2022, already allows transactions between both individuals and between citizens and commercial companies.
Apparently, the project is quite successful, since RBI decided to add new features to the digital currency. "It is proposed to introduce additional programmability and battery life features for retail payments using CBDC," the head of RBI said in a recent statement.
Programmability will make it easier to conduct targeted transactions, and offline mode will allow payments to be made in areas with poor or limited Internet coverage. The new features will be implemented gradually through additional pilot programs.
As reported by Indian media, the head of the Central Bank Shaktikanta Das gave examples of possible use of the programmability function of digital currency. In particular, state agencies will be able to make payments to citizens with reference to specific spending goals. In addition, companies will be able to set certain spending parameters, for example, allowing employees to spend money only on business trips. It is also assumed that digital money can be linked to geographical zones.
The RBI's plans for the digital rupee go beyond creating programmable and stand-alone CBDCs. The bank also intends to create a set of fundamental rules for verifying authenticity in digital payments. The organization has already tested several additional authentication methods, including sending one-time passwords via SMS, and is now looking for new methods to improve the security of payment transactions.
Another step in India's digital economy is plans to introduce taxes on digital goods, which could lead to the imposition of customs duties on a wide range of goods, from software downloads to video games. India insists on the cancellation of the 1998 agreement on non-taxation of digital goods, arguing that it will lose tariff revenues and reduce trade competitiveness.
The Reserve Bank of India (RBI) announced on Thursday plans to make its digital currency programmable and enable it to be used offline, without an internet connection. The current pilot project of the Central Bank's retail digital currency (CBDC), launched at the end of 2022, already allows transactions between both individuals and between citizens and commercial companies.
Apparently, the project is quite successful, since RBI decided to add new features to the digital currency. "It is proposed to introduce additional programmability and battery life features for retail payments using CBDC," the head of RBI said in a recent statement.
Programmability will make it easier to conduct targeted transactions, and offline mode will allow payments to be made in areas with poor or limited Internet coverage. The new features will be implemented gradually through additional pilot programs.
As reported by Indian media, the head of the Central Bank Shaktikanta Das gave examples of possible use of the programmability function of digital currency. In particular, state agencies will be able to make payments to citizens with reference to specific spending goals. In addition, companies will be able to set certain spending parameters, for example, allowing employees to spend money only on business trips. It is also assumed that digital money can be linked to geographical zones.
The RBI's plans for the digital rupee go beyond creating programmable and stand-alone CBDCs. The bank also intends to create a set of fundamental rules for verifying authenticity in digital payments. The organization has already tested several additional authentication methods, including sending one-time passwords via SMS, and is now looking for new methods to improve the security of payment transactions.
Another step in India's digital economy is plans to introduce taxes on digital goods, which could lead to the imposition of customs duties on a wide range of goods, from software downloads to video games. India insists on the cancellation of the 1998 agreement on non-taxation of digital goods, arguing that it will lose tariff revenues and reduce trade competitiveness.
