Cryptocurrency exchange Bybit has launched digital rupee payments. The introduction of the Indian central bank digital currency (CBDC) on the exchange will enhance security for rupee users, the exchange said.
The e-rupee will be available as a wallet-based payment solution. It joins existing Bybit options for payment in rupees by bank transfer, third-party services such as Paytm and India’s Unified Payments Interface, which is the Reserve Bank of India’s (RBI’s) national payments portal.
The e-rupee expands payment options
With the digital rupee, users “can mitigate the risk of their bank accounts being targeted by cybercriminals,” Dubai-based Bybit assured in a statement. Bybit sales and marketing director Joan Han said:
"By incorporating the eRupee payment, Bybit aims to elevate the payment experience for INR [Indian rupee] users, fostering trust and reliability in every transaction. Furthermore, this initiative is expected to attract a wider pool of merchants to the platform.”
At present, the e-rupee is used on Bybit for peer-to-peer crypto transactions. The Indian CBDC is a pilot project. The retail e-rupee was launched in December 2022, shortly after the debut of the wholesale version.
In March 2023, the RBI and the United Arab Emirates Central Bank signed a memorandum of understanding on a CBDC bridge between the jurisdictions.
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The e-rupee needs has yet to take off
The presence of the digital rupee (or any CBDC) on a crypto exchange is noteworthy. Despite efforts by banks and retailers to popularize the retail e-rupee, its usage has been lackluster so far. As of June, the retail e-rupee had 5 million users. The RBI plans to add offline capabilities to the e-rupee, which could increase its usage in areas with limited internet access.
Programmability was added to the digital rupee this year. The first use of the programmable e-rupee was for reimbursement of carbon credit to farmers by IndusInd Bank in April. Nonetheless, the wholesale e-rupee use has been limited, and it has been criticized for being “cumbersome” to use.
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