Empower RBI's e-rupee: Start with GST collection

India should encourage the adoption of its CBDC to reap the benefits of technology and keep up with the evolution of money. Asking for GST payments in it could mark a turning point

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It is high time the Reserve Bank of India (RBI) and the government got around to making greater use of India's central bank digital currency (CBDC), the e-rupee. Capital flows in and out of securities markets, whether from or to external jurisdictions, would become instantaneous if these make use of e-rupee wallets-enabling wide compliance with the mandated speed of settlement, post transaction. Right now, one hitch in expanding the e-rupee's retail use is the ubiquity of digital payments done via the Unified Payments Interface (UPI). Recently, the number of daily UPI transactions exceeded 700 million. When we have UPI, why do we need an e-rupee? This platform transfers funds from one bank account to another instantly, which suits users who routinely access funds in their own accounts online, but not everyone. For India's vast migrant population, hailing from remote corners of the country where bank branches and automated cash dispensers are a rarity, UPI transfers are not enough. For them, e-rupee wallets in the hands-or rather, phones-of family mem