• CBDCs are not impacted by cryptocurrency lows because they are based on our fiat money.
• The CBDC pilot in India began operating earlier in November.
• India's CBDC has not yet been released.

The digital rupee CBDC's use cases are being expanded by the Reserve Bank of India (RBI). The testing of the Indian CBDC for retail purposes will begin on December 1 in a few different parts of the nation.

 The digital rupee is a virtual representation of India's fiat currency that is built on blockchain with the goal of accelerating digital transactions and enhancing their security. The CBDC will be used in its retail testing by both customers and retailers who have been hand-selected under the RBI's supervision.

The CBDC will be provided to the testers as part of the trials in a digital wallet backed by partner national banks. Tablets, PCs, and cellphones can all use the wallet. Both person-to-person (P2P) and person-to-merchant transactions are possible (P2M). 

QR codes that are displayed at retail places can be used to make payments to retailers. The e-R would provide characteristics of actual money, such as trust, safety, and settlement finality. It will not bear interest, just like cash, and can be exchanged for other forms of payment, such as bank deposits, according to a statement released by the RBI. 

The distributed ledger technology known as blockchain serves as the foundation for both CBDCs and cryptocurrencies. The distinction between CBDCs is that central banks both issue and oversee them. 

On the other hand, cryptocurrencies are mainly unregulated and not under the supervision of a central bank. The introduction of India's CBDC pilot, according to RBI governor Shaktikanta Das earlier this month, was a turning point in the history of the nation's money.

The Chief Technical Officer and Co-Founder of Mudrex, Alankar Saxena, has mentioned that this CBDC will assist Indians in making the transition to an open cashless financial system.