DC Wallet teams with Indian government to boost digital rupee use

DC Wallet has partnered with AFC India Limited, a government-owned entity, to enhance the adoption of India's digital rupee, targeting over 200 million users.

This initiative follows the Reserve Bank of India's recent test of the digital rupee on Ripple's (CRYPTO:XRP) XRP ledger in November, aiming to facilitate wider acceptance of the Central Bank Digital Currency (CBDC).

The partnership focuses on providing closed-loop wallet solutions tailored for sectors such as agriculture, education, and travel.

AFC India will assist in integrating DC Wallet with public and private sector banks to reach unbanked and underbanked populations.

The collaboration aims to offer cost-effective cross-border payment solutions, addressing the needs of these communities.

Despite the digital rupee being launched over two years ago, its adoption has been limited.

The recent partnership seeks to overcome these challenges by leveraging the strengths of both organisations.

DC Wallet's press release emphasised the goal of enhancing financial inclusion through this initiative.

The Reserve Bank of India's previous testing confirmed the digital rupee's security and efficiency for institutional use cases.

This partnership draws parallels with similar developments in Brazil, where central banks have collaborated with crypto firms to promote CBDCs.

India's financial regulators have shown a preference for promoting the digital rupee while maintaining a cautious stance toward cryptocurrencies like Bitcoin and Ethereum.

The announcement did not specify investment amounts but outlined ambitious objectives for widespread adoption.

Winning over users in unbanked areas presents a significant challenge, but the collaboration is positioned to make strides in this direction.