Fintech firm Cred joins Indian central bank’s digital currency project

The Reserve Bank of India had started a pilot for the e-rupee, which is a digital alternative to the physical currency, in December 2022 [File]
| Photo Credit: REUTERS

Tiger Global and Peak XV backed Indian firm Cred has become the first fintech platform to roll out access to India’s central bank digital currency, the company said on Tuesday.

The Reserve Bank of India had started a pilot for the e-rupee, which is a digital alternative to the physical currency, in December 2022.

Initially, the central bank had permitted only banks to offer access to the digital currency but in April 2024 said it will allow payment firms to offer e-rupee transactions.

Alphabet’s GooglePay, Walmart-backed PhonePe, AmazonPay and MobiKwik were among the payment firms seeking to join the digital currency pilot, Reuters reported in August 2024.

Cred will roll out access for its e-rupee wallet to a select set of users and the issuance of e-rupee tokens into the wallets will be facilitated by YES Bank, the company said in a statement.

“Our goal is to make e-rupee transactions frictionless and drive its adoption among the most creditworthy Indians,” Kunal Shah, the founder of Cred, said.

While e-rupee transactions had surged initially, they have since declined, reflecting the struggle central banks face globally in popularising digital currencies.