New Delhi: India's digital currency initiative, the e-rupee, has encountered challenges in gaining public traction, according to reports in some sections of national media.
Initially launched by the Reserve Bank of India in December 2022 to replace physical cash, the e-rupee saw a peak of 1 million daily retail transactions by December 2023, aided by incentives and payroll disbursements.
However, recent reports indicate a decline, with transactions plummeting to just 100,000 per day, marking a mere fraction of its previous peak. Sources attribute the ongoing transactions primarily to payroll benefits disbursed through banks. Towards month-end, transaction volumes slightly increase to around 250,000 to 300,000 per day, as per insider accounts.
Despite the Reserve Bank's initial push to scale up to 1 million daily transactions by late 2023, efforts have waned, highlighting subdued organic demand. The central bank, focusing on technology testing and use case development, has no immediate plans for rapid expansion beyond the pilot phase.
Globally, similar challenges are noted among central banks experimenting with digital currencies, with many facing difficulties in surpassing cash's appeal and demonstrating added value to consumers. However, specific transaction data remains undisclosed to the public.
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