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The scope of Central Bank Digital Currency (CBDC)-Wholesale (e₹-W) can be expanded by including settlement of primary auctions of Government Securities, FIIs participating in the debt segment, and mutual funds, among others, according to State Bank of India Chairman Dinesh Kumar Khara.
Currently, the use case for RBI’s e₹-W pilot, which commenced on November 1, 2022, is the settlement of secondary market transactions in government securities.
The use of CBDC for settling rupee-denominated external debt, which constitutes 30 per cent of India’s external debt, can also be envisaged, Khara said at a CBDC event organised by the Indian Banks’ Association.
He observed that External Commercial Borrowing repayment may also be settled via CBDC subsequently. This currency could also be used for the settlement of trade transactions with Sri Lanka and Bhutan.
Khara said CBDC (retail digital Rupee/ e₹-R) salary accounts can be given as an option for those who wish to transact in this currency. Further, payment of advance taxes and property taxes could also be envisaged.
RBI launched the first pilot for retail digital Rupee (e₹-R) on December 1, 2022.
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