India’s Digital Currency Pilot Could Include Amazon, Google, And Walmart

As a seasoned financial analyst with over two decades of experience under my belt, I’ve seen the rise and fall of various technological innovations reshaping our global financial landscape. The latest development with India’s Central Bank Digital Currency (CBDC), the e-rupee, has caught my attention, particularly given the involvement of major internet and retail giants like Google, Amazon, and Walmart.


Leading online and retail companies such as Google, Amazon, and Walmart are demonstrating strong enthusiasm towards joining the ongoing trial of India’s digital currency issued by the central bank, often referred to as the electronic rupee, as per the Reserve Bank of India (RBI).

According to a Reuters report, this recent event underscores the increasing acceptance of digital currencies and the potential for these companies to accelerate the spread of the e-rupee by leveraging their extensive transaction systems.

Starting from December 2022, only banks were allowed to participate in the e-rupee trial. However, the Reserve Bank of India has now expanded the criteria, allowing payment service providers such as PhonePe, Google Pay, and Amazon Pay to join the initiative.

Approximately 85% or more of digital currency transactions in India made through the Unified Payments Interface (UPI) are handled by a handful of businesses, with these companies processing approximately 13 billion transactions every month.

Increasing Participation In The Digital Currency Pilot

It was appropriate for the Reserve Bank of India (RBI) to broaden its test program, which aligns with its larger objective of fostering the e-rupee. The intention behind this digital currency initiative is to enhance the security and efficiency of financial transactions by converting them into digital records.

To ensure the digital currency is robust and reliable for widespread adoption, the action aims to build trust among the public by demonstrating its strength and dependability first.

India’s Digital Currency Pilot Could Include Amazon, Google, And Walmart

By broadening the scope of the e-rupee trial, the Reserve Bank of India can gather additional data and perspectives about how the digital rupee is being utilized. This increased understanding will enhance the efficiency of our national payment system and contribute to promoting financial inclusivity across the country on a larger scale.

Three major banks – State Bank of India, ICICI Bank, and HDFC Bank – have been chosen to take part in the trial phase of this project. By implementing crucial digital payment methods, the central bank predicts a rise in the number of transactions and increased interaction between users and electronic currency.

Electronic wallets allow users to store and transfer digital rupees much like physical cash. This innovative project was initially launched in New Delhi and Mumbai, subsequently expanding to Hyderabad and Ahmedabad. The Reserve Bank of India aims to gradually increase the number of financial institutions and locations partnered with e-rupees.

Will The Tech Giants’ Presence Make An Impact?

Initially, daily digital currency transactions soared past a million, but usage has since dropped to between 100,000 and 200,000 transactions a day. It’s expected that the RBI’s decision to incorporate popular payment firms will reignite interest in digital currencies and motivate more individuals to engage with them.

As a researcher, I am part of an ongoing pilot project overseeing the development and testing of the e-rupee. At this stage, we are focusing on refining and perfecting the digital currency before considering a wider rollout. This cautious approach allows us to thoroughly evaluate its performance and make necessary improvements before it becomes widely accessible.

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2024-08-05 19:11