The Reserve Bank of India (RBI) is currently in talks with its counterparts in at least 18 other countries about the possibility of making cross-border payments using its central bank-issued digital currency (CBDC), the so-called “digital rupee”.
A report on RBI’s ambitious plans for overseas trading using India’s CBDC appeared in the Economic Times on June 27. He points to several public statements by RBI Governor Shaktikant Das.
In June, during a speech in London, Das highlighted the importance of foreign trade infrastructure for the digital rupee, which was expected to reach one million domestic users in early July.
“But also international payments will become much faster, more hassle-free and more cost-effective. This is another area that requires a lot of attention. We are in constant dialogue with other central banks that have introduced or are introducing CBDC,” he said.
According to the report, banks from 18 countries have already opened vostro accounts in rupees as of July 2022. In another public address, Das explained India’s willingness to make its CBDC available as a payment method for importing Indian goods to countries facing a shortage of US dollars:
“In India there is no shortage of dollars, but in some other markets, due to their shortage, they are unable to import,” he said.
Another reason for high hopes for the digital rupee in foreign trade transactions is the desire to save the country’s US dollar reserves:
“During the period of the so-called ‘taper tantrum’, suddenly India had an external sector crisis and the RBI had to attract foreign influxes by offering some incentives. We did not want a repeat of this situation,” we read.
RBI launched the Digital Rupee Wholesale Pilot in November 2022 and the Digital Rupee Retail Pilot in February 2023. In March, an agreement was announced with the Central Bank of the United Arab Emirates to explore the CBDC Bridge for trade and remittances.
Technical Market Outlook:
The BTC/USD pair has made a new swing high at the level of $31,372 as the up trend has resumed and then pulled-back from the extremely overbought market conditions on the H4 time frame chart. The intraday technical support is seen at the level of $29,556. Moreover, the bulls had broken above the technical resistance located at $28,446 and now this level will work as the technical support and the line in sand for bulls. The momentum is neutral on the H4 time frame chart as it hovers around the level of fifty, so the bulls might soon be ready to continue the up move. The next target for bulls is still seen at the level of $32,350.
Weekly Pivot Points:
WR3 – $31,091
WR2 – $30,856
WR1 – $30,720
Weekly Pivot – $30,622
WS1 – $30,486
WS2 – $30,388
WS3 – $30,156
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.
The material has been provided by InstaForex Company – www.instaforex.com
Crypto Industry News:
The Reserve Bank of India (RBI) is currently in talks with its counterparts in at least 18 other countries about the possibility of making cross-border payments using its central bank-issued digital currency (CBDC), the so-called “digital rupee”.
A report on RBI’s ambitious plans for overseas trading using India’s CBDC appeared in the Economic Times on June 27. He points to several public statements by RBI Governor Shaktikant Das.
In June, during a speech in London, Das highlighted the importance of foreign trade infrastructure for the digital rupee, which was expected to reach one million domestic users in early July.
“But also international payments will become much faster, more hassle-free and more cost-effective. This is another area that requires a lot of attention. We are in constant dialogue with other central banks that have introduced or are introducing CBDC,” he said.
According to the report, banks from 18 countries have already opened vostro accounts in rupees as of July 2022. In another public address, Das explained India’s willingness to make its CBDC available as a payment method for importing Indian goods to countries facing a shortage of US dollars:
“In India there is no shortage of dollars, but in some other markets, due to their shortage, they are unable to import,” he said.
Another reason for high hopes for the digital rupee in foreign trade transactions is the desire to save the country’s US dollar reserves:
“During the period of the so-called ‘taper tantrum’, suddenly India had an external sector crisis and the RBI had to attract foreign influxes by offering some incentives. We did not want a repeat of this situation,” we read.
RBI launched the Digital Rupee Wholesale Pilot in November 2022 and the Digital Rupee Retail Pilot in February 2023. In March, an agreement was announced with the Central Bank of the United Arab Emirates to explore the CBDC Bridge for trade and remittances.
Technical Market Outlook:
The BTC/USD pair has made a new swing high at the level of $31,372 as the up trend has resumed and then pulled-back from the extremely overbought market conditions on the H4 time frame chart. The intraday technical support is seen at the level of $29,556. Moreover, the bulls had broken above the technical resistance located at $28,446 and now this level will work as the technical support and the line in sand for bulls. The momentum is neutral on the H4 time frame chart as it hovers around the level of fifty, so the bulls might soon be ready to continue the up move. The next target for bulls is still seen at the level of $32,350.
Weekly Pivot Points:
WR3 – $31,091
WR2 – $30,856
WR1 – $30,720
Weekly Pivot – $30,622
WS1 – $30,486
WS2 – $30,388
WS3 – $30,156
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.
The material has been provided by InstaForex Company – www.instaforex.com
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