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LATEST NEWS UPDATES | E-rupee transactions will not be tracked

E-rupee transactions will not be tracked

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published Published on Dec 8, 2022   modified Modified on Dec 8, 2022

-The Telegraph

Many experts, including former RBI governor D Subbarao, have flagged concerns over the privacy aspect of CBDC

Mumbai: The RBI on Wednesday said the central bank digital currency (CBDC) will remain anonymous and regulations that are applicable to paper currency will prevail on the e-rupee.

Earlier this month, the RBI had begun a pilot for the retail digital rupee after it launched another project for wholesale digital rupee among financial institutions.

Many experts, including former RBI governor D Subbarao, have flagged concerns over the privacy aspect of CBDC even as others have questioned whether it will be as useful as the popular unified payment interface (UPI).

There are also worries that agencies such as the income tax or the enforcement directorate may look into some of these transactions since they are not anonymous.

Replying to a question on digital currency at the post policy press conference, RBI deputy-governor T. Rabi Sankar said the central bank was looking at solutions to make CBDC at par with paper currency when it comes to having the key feature of anonymity which has ensured that cash is still used in the developed world.

``The challenge is to ensure the anonymity because the normal understanding is that anything digital leaves a footprint. This can have various solutions,” Sankar said.

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The Telegraph, 8 December, 2022, https://www.telegraphindia.com/business/e-rupee-transactions-will-not-be-tracked/cid/1902577


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