India is set to begin pilot launches of its new Central Bank Digital Currency (CBDC), also known as the e-rupee, for specific use cases in the near future.

In a statement, the central bank said, “Currently, we are at the forefront of a watershed movement in the evolution of currency that will decisively change the very nature of money and its functions.”

The new Digital Rupee will be exchangeable with the existing currency at par, but it will simply take a different form.

The central bank added, “The concept note also discusses key considerations such as technology and design choices, possible uses of the digital rupee, and issuance mechanisms, among others.”

The Reserve Bank of India expects that the new digital currency will lower the cost of issuing currency and performing transactions, as financial regulators across the globe seek to make the transition to electronic currencies and phase out paper currencies.

The goal is to for Retail Central Bank Digital Currencies, designed to settle interbank transfers and wholesale transactions, to be made available to everyone for use, from private sector individuals to non-financial consumers, and businesses.

Wholesale CBDC is an electronic version of cash which would normally be for use in retail transactions, but which is specially designed for restricted access to select financial institutions.

The concept note produced by the Reserve Bank of India says that the e-rupee will reinforce India’s digital economy, expand financial inclusion, and enhance the efficiency of the nation’s monetary and payment systems.