Eight banks united to accelerate the Indian digital currency initiative

In recent years, the world has seen a surge in the development of the digital currency. Several countries have been pushing toward the implementation of digital currency, including China, Japan, the Bahamas, and Sweden. Now, India is set to join the force as the Reserve Bank of India (RBI) is all set to publicize India’s first digital currency across the country.

To smoothen this process eight Indian banks have partnered with the Indian government to promote a digital currency initiative in all regions of the country. The project, which is being spearheaded by the Reserve Bank of India (RBI), aims to promote more and more use of a digital version of the Indian rupee.

The eight banks that have signed up for the project are the State Bank of India (SBI), HDFC Bank, ICICI Bank, Bank of Baroda, Kotak Mahindra Bank, Union Bank of India, Yes Bank, and IDFC First Bank. The project is part of the government’s efforts to promote financial inclusion and reduce the use of cash in the economy.

It involves blockchain-based technology that enables the banks to issue digital tokens. The tokens are backed by the RBI and will be used for digital payments and transfers.

How many merchants have adopted this new digital form of payment?

A new digital currency hit the Indian market in December of last year and has since been used in over 50,000 Indian retail stores of Mumbai, Delhi, Bengaluru and Bhuvneshvar.

However, it is only a teaser, since this digital currency will soon spread over all of India, making it simpler for users to send and receive money without having to use cash. The project is expected to benefit both the banks and their customers.