Indian CBDC can’t be converted to Cash directly... and more..
Indian CBDC can’t be converted to Cash directly... and more..
Subtle Bits of Web3 - Week 3, Jan 2023
eRupee, Indian CBDC can’t be directly converted to Cash
RBI launched the eRupee last December to act as a legal tender.
eRupee will act as a “liability” on the RBI’s balance sheet, and the RBI will be responsible for the expenses related to the eRupee.
Thus, the merchants will not be charged MDR.
MDR(Merchant Discount Rate) is the fee or percentage merchants pay to financial institutions to enable them to accept card payments.
YesBank, IDFC Bank, and ICICI Bank have made the digital e-wallet available for download.
China’s digital yuan gets smart contract functionality
Digital Yuan or eCNY has received a few major upgrades recently including smart contracts.
The smart contract function was launched on the Meituan app, a Chinese app offering retail and food delivery services.
When Meituan users place an order and pay with their e-CNY wallet, a smart contract triggers and searches for keywords and purchased items in their order. If a user buys something on the list of keywords for the day, they go in the draw to win part of a prize.
Investors can also use the eCNY CBDC to buy securities for the first time.
The digital yuan wallet app also received an update with users now able to make contactless payments using Android phones even if their device is without internet.
The new uses for the digital yuan come as China has been struggling with the adoption rate of its CBDC.