Daybreak Who’s using the e-rupee?
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Jul 28, 2025 Explore the intriguing dynamics of India's digital currency landscape. Discover how UPI transactions soar while cash circulation continues to thrive. The discussion dives into the adoption challenges of the e-rupee, driven more by bank policies than market demand. Delve into the complexities of cash economy management and the slow embrace of stablecoins. Amidst innovation, discover the balance needed for true financial inclusion in this rapidly evolving digital frontier.
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Cash Dominates Despite Digital Push
- Despite record UPI transaction volumes in India, physical cash usage has not declined and cash in circulation has grown.
- The e-rupee digital currency has increased mainly due to banks issuing allowances, not consumer demand.
Stablecoins vs India's Digital Money
- Stablecoins are rapidly growing globally, promising faster, cheaper transactions.
- India remains cautious as digital money like e-rupee struggles to shift away from traditional cash and bank deposits.
UPI Benefits and Limitations
- UPI transactions are easily traceable, improving GST collection and government revenue.
- However, UPI lacks credit creation and financial transformation, which depend on bank deposits and credit flows.