Explained: How RBI is using technology to operationalise e-rupee? 10 points

The Reserve bank of India on Friday came up with a concept note detailing plan of introducing its own digital currency - the Central Bank Digital Currency. RBI is planning to start the e-rupee project on a pilot basis The RBI in its 51-page concept note detailed various aspects including the technological measures to operationalise its electronic currency, its underlying digital infrastructure and details about the various technological options the central bank is exploring. 1)RBI says the digital currency can be operated either by a distributed ledger - adopted in the blockchain mechanism, or a conventional centralised system or can even come up with a hybrid system. 2) Although RBI is planning to start the CBDC project on a pilot basis, it has mentioned in the white paper that the system should be built up such that it can be extended to large-scale deployments in the future without requiring to be redesigned or reworked.