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In a trial, secondary market transactions in Indian government bonds worth 2.75 billion Indian rupees ($33.29 million) were settled using the central bank-backed digital currency of the Reserve Bank of India, data on Tuesday indicated.
Data as of 4 p.m. IST (1030 GMT) showed that trades in a total of three securities — five-year 7.38% 2027 old benchmark 6.54% 2032 and the current benchmark 7.26% 2032 bonds — were settled using the new method.
“Since this was the first day, some deals only in liquid bonds were settled using CBDC,” a trader with a state-run bank said.
The RBI stated on Monday when it announced the pilot for CBDC in the wholesale segment that the e-rupee will increase the efficiency of the interbank market.
“Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk,” the RBI had said.
Within a month, it intends to introduce the e-rupee for the retail market.