The launch of e-RUPI, a cashless and contactless instrument for digital payment, has cheered the cryptocurrency industry. The QR code-based or SMS string-based e-voucher when generated, will reach the mobile of the beneficiaries. There will be no involvement of physical intermediaries like banks. This voucher can be redeemed without a card, digital payments app or internet banking access. e-RUPI is different from cryptocurrencies. It's not based on blockchain. However, the crypto enthusiasts believe e-RUPI and blockchain work on the similar fundamental grounds of removing intermediaries to ensure the benefits reach the end user in a leak-proof manner.
Just like the blockchain technology, “e-RUPI emphasises one of the core messages of blockchain-based tokens which is enabling of end to end digital transactions without any physical intermediary which leads to less operating costs,” says Nischal Shetty, CEO, WazirX.
The launch of e-RUPI, will give a new dimension to digital governance. Crypto enthusiasts welcome the initiative and they believe crypto assets and such initiatives to boost the digital ecosystem can exist together. As per Avinash Shekhar, Co-CEO, ZebPay, these are great steps towards forming a complete digital economy that have their own unique roles. He believes crypto assets, along with these innovations like e-RUPI and digital currencies, can co-exist in the digital Indian economy. “We are also looking forward to seeing the features of central bank digital currencies (CBDCs) and how they will work,” Shekhar adds.
The voucher bolsters India's image as the leader of digital payments globally. Further, “it augurs data privacy and security just like cryptocurrencies as intimate personal details are not required during redemption of vouchers. Overall, this heralds well for digitising India's financial stack,” says Shetty.
Prime Minister Narendra Modi on Monday launched the digital payment solution -- e-RUPI via video conferencing. Experts see it as a great move towards financial inclusion. “E- Rupi is a great one of its kind initiative to provide a secured financial support to the masses in the form of a coupon which makes money quite easy to carry and freely, especially at the time of traveling. It largely caters to the large section of the society that still don’t have any bank accounts hence it can enlarge the usage of digital payment mod,” Naval Goel, Founder and CEO, PolicyX.com.
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