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A blockchain is normally considered to be a permissionless network, where they are multiple nodes — or computers, for simplicity’s sake — that verify transactions.
However, with the digital rupee, the RBI wants to remain in control. This means, ideally, it wants to be the only validator. Simply put, rather than a permissionless network, it would want one that is permissioned.
That could work if the digital rupee is restricted to the transactions between the apex institution and banks. However, if the central bank wants to make the digital rupee to all Indian citizens, it’s likely that it will have to rope in more nodes for help — a trusted network of sorts to help it scale and manage high volumes.
“The technology choices are open,” said RBI executive director T Rabi Shankar during a press conference on February 10.