Fintechs launch CBDC wallets: Is RBI'S e-rupee set for greater adoption?

Nine months after the Reserve Bank of India announced (RBI) allowing non-bank payments players into central bank digital currency (CBDC) pilots, two private fintech firms, CRED and MobiKwik, have opened e-rupee wallets for their users in partnership with Yes Bank.

- Anshika Kayastha

The RBI had then said that the move is expected to enhance access and expand choices available to users apart from testing the resiliency of the CBDC platform to handle multi-channel transactions.

But will the entry of these fintechs help increase awareness about how to deploy e-rupee and promote usage of CBDC wallets? CBDC wallets After the central bank enabled CBDC issuance for thirdparty application providers (TPAPS), platforms such as CRED and MobiKwik, in collaboration with RBI and Yes Bank as sponsor bank, have rolled out versions of e-rupee wallets for select users.

The idea behind allowing fintechs to offer e-rupee wallets is to combine the trust and safety of a sovereign currency with the frictionless and superior payments experience offered by TPAPs, reduce cash in circulation and drive financial inclusion.

It aims to broaden CBDC's reach beyond existing digital wallet users to a more extensive and diverse user base.