Instead of providing cash to help someone, an e-RUPI voucher can be used for medical or educational purposes.
Indian Prime Minister Narendra Modi recently concluded a video conference in which he officially launched India’s first digital payment solution, e-RUPI. India’s first digital currency is a new payment tool that functions as an e-voucher and is delivered to mobile phones via a QR code or SMS string.
e-RUPI is based on the UPI (United Payments Interface) protocol, a payment system developed by the National Payment Corporation of India that enables instant real-time payments. According to the prime minister’s office, one of the primary applications for the newly delivered e-RUPI digital currency is the “leak-proof delivery” of various social services. If an organization wishes to help someone with their treatment, education, or other endeavors, they may give an eRUPI voucher in exchange for cash.
While e-RUPI is referred to as a digital currency, it has nothing to do with blockchain technology, as digital currencies are directly tied to the country’s primary fiat currency and cannot be used in its absence. Due to the fact that e-RUPI functions as an e-voucher, the only way to issue it is with fiat currency. Additionally, it is administered by India’s central bank.
Simultaneously with the launch of the e-RUPI, the central bank intends to launch a CBDC (Central Bank Digital Currency), which may be directly compatible with blockchain technology. According to T Rabi Sankar, deputy governor of the Reserve Bank of India:
“[CBDC are] desirable not just for the benefits they create in payments systems, but also might be necessary to protect the general public in an environment of volatile private VCs”
However, before the country can create a fully functional blockchain-based digital currency, it must undergo a legal overhaul of the currently developing and operating virtual currencies and blockchain companies.
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