WCBDC

Wholesale Central Bank Digital Currency (wCBDC)

Wholesale Central Bank Digital Currency (wCBDC) is a digital form of the Indian rupee that is issued and regulated by the Reserve Bank of India (RBI).

wCBDC is stored in digital e₹ wallets and can be used for transfer and trading with banks and institutions that also have digital e₹ wallets. Payments made with wCBDC are instant as it does not follow the traditional settlement process.

Federal Bank is now live with wholesale central bank digital currency (wCBDC) for Call Money Market and GSEC Settlements in its pilot phase. This makes Federal Bank one of the leading banks in India to go live with Wholesale Digital Currency.

The launch of wCBDC for Call Money Market and G-sec Trading is a significant development for the Indian financial system which is expected to gain more importance as RBI is planning for more use cases of this cutting-edge technology.

 

“Several central banks across the world are considering introduction of CBDCs and are taking steps in this direction. India is one of the few countries which have launched CBDC pilots in both wholesale and retail segments. Slowly and steadily, we are expanding the pilot to more banks, more cities, more people and more use cases. The empirical data that we are generating would go a long way in shaping the policies and future course of action. With its instant settlement feature, I believe, CBDCs can play an important role in making cross-border payments cheaper, faster, and more secure.”

– Shri Shaktikanta Das (Governor, RBI) at G20 TechSprint Event on 04th September, 2023

 

What are the advantages of Wholesale Central Bank Digital Currency (wCBDC)

wCBDC has several advantages over traditional payment methods, such as cash and RTGS, including the following:

 
Improved efficiency and transparency: Wholesale Central Bank Digital Currency can help to make Call Money Market and G-sec Trading more efficient and transparent by reducing the need for manual reconciliation and settlement processes.
 
Reduced risk of settlement failures: wCBDC is a real-time settlement system, which means that there is no risk of settlement failures. This can help to improve the stability of the financial system.
 
Enhanced financial inclusion: wCBDC can help to promote financial inclusion by providing a more convenient and accessible way for banks to make and receive payments.
 
Support for innovation: wCBDC can help to support innovation in the financial sector by providing a new platform for developing new products and services.

 

Federal Bank is committed to provide best-in-class products and services to its customers by implementing such innovative digital solutions. We believe that wCBDC has the potential to revolutionize the way financial institutions operate in India and across the globe.