Bybit Introduces Digital Rupee Payments For Indian Users

Popular crypto exchange Bybit launched digital rupee payments on 30 July 2024, integrating the Indian central bank digital currency (CBDC) into its platform.

In a press release, the Dubai-based firm emphasized the enhanced security the e-rupee brings. Bybit said that the e-rupee helps users “mitigate the risk of their bank accounts being targeted by cybercriminals.”

The e-rupee, offered as a wallet-based payment solution, adds to Bybit’s existing payment options. 

The exchange’s currect options include bank transfers, third-party services like Paytm, and India’s Unified Payments Interface (UPI), the national payments portal managed by the Reserve Bank of India (RBI).

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Use Of E-Rupee For P2P Transactions

Currently, the e-rupee is utilized on Bybit for peer-to-peer crypto transactions. The Indian CBDC, still in its pilot phase, saw its retail version launched in December 2022, following the debut of the wholesale version.

In March 2023, India’s RBI and the UAE Central Bank partnered to establish a CBDC bridge between the jurisdictions.

“By incorporating the e-rupee payment, Bybit aims to elevate the payment experience for INR users, fostering trust and reliability in every transaction,” Joan Han, Bybit’s Sales and Marketing Director.

“Furthermore, this initiative is expected to attract a wider pool of merchants to the platform, driving business growth and expanding the reach of Bybit’s services within the market,” Han added. 

The introduction of the digital rupee on a crypto exchange is a significant development.

Although efforts are ongoing to add offline capabilities to the e-rupee, enhancing its usage in areas with limited internet access, the retail version of the digital rupee was updated this year to include programmability.

In April, IndusInd Bank used this feature to reimburse farmers for carbon credits. Despite these advancements, the wholesale e-rupee’s usage has been limited and criticized for being cumbersome.

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India To Reveal Crypto Policy Direction By September

The Indian government is gearing up to release a discussion paper outlining its policy direction on digital assets before September.

“The policy stance is how does one consult relevant stakeholders, so it is to come out in the open and say here is a discussion paper these are the issues and then stakeholders will give their views,” Economic Affairs Secretary Ajay Seth said in a recent interview.

Meanwhile, India continues to grapple with rigid crypto tax rules. As reported, Finance Minister Nirmala Sitharaman has upheld the controversial crypto tax regulations during the announcement of the fiscal year 2024-2025 budget.

Despite extensive lobbying from the cryptocurrency industry, which presented substantial evidence to advocate for a reduction in the tax-deducted-at-source (TDS) policy from 1% to 0.01%, the existing rules remain unchanged.

The cryptocurrency sector had also requested the government to introduce progressive taxes on gains instead of the existing flat 30% rate and to allow losses to offset gains.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.