In a potential game-changer for India’s digital currency landscape, American payment behemoths Google Pay and Amazon Pay are reportedly keen on joining the Reserve Bank of India’s (RBI) pilot for the e-rupee, the country’s central bank digital currency (CBDC).
According to sources familiar with the matter, these tech giants, along with Walmart-backed PhonePe, have expressed their interest in facilitating e-rupee transactions through their platforms. Indian fintech startups Cred and Mobikwik have also thrown their hats in the ring.
Initially, the e-rupee pilot was exclusive to Indian banks, but the RBI opened the doors to non-bank payment firms in April, marking a significant expansion of the project.
Launched in December 2022, the e-rupee aimed to offer a digital equivalent of physical cash with enhanced privacy features. While the RBI has emphasized the anonymous nature of e-rupee transactions, adoption rates have been slower than anticipated. Despite reaching a milestone of 1 million daily transactions in late 2023, the momentum has since dwindled, raising questions about the CBDC‘s overall acceptance.
Also Read: From Payments to Custody: Ripple Acquires Standard Custody, Solidifying Its $10B+ Fintech Lead
The entry of global payment giants like Google and Amazon could be a catalyst for wider e-rupee adoption. Their vast user base and technological prowess could help overcome the challenges faced so far. However, the success of this strategy hinges on the RBI’s ability to address the underlying issues that have hindered e-rupee’s growth, such as user education and incentive structures.
As India continues to push for a cashless economy, the integration of these tech giants into the e-rupee ecosystem will be closely watched by industry experts and policymakers alike. The coming months will be crucial in determining whether the e-rupee can truly become a mainstream payment method in the world’s second-most populous nation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
