After a long wait, today RBI (Reserve Bank of India) launched Digital Rupee, Yes RBI launched Digital Rupee on 1st November 2022.
digital Rupee has been launched.RBI had issued information through the news that rbi’s pilot project of digital Currency payment is being launched.
What is Digital Rupee?
A Central Bank Digital Currency (CBDC) or Digital Rupee
is a digital form of currency notes issued by the central bank.
Digital currency or the rupee is an electronic form of money, that
can be used in contactless transactions.
Presenting Union Budget 2022, Finance minister Nirmala
Sitaraman Announced that the Reserve bank of India (RBI)
would be rolling out its digital currency soon.
It is said that the retail rupee and wholesale rupee can be seen in two types of digital currency in India.
Only select people will be able to use wholesale Rupees, which are financial institutions selected by RBI.
Only he will be able to do transactions with him.
RBI has selected 9 banks for the wholesale segment.
The nine Banks are the State Bank Of India, Bank Of Baroda,
Union Bank Of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank,
Yes Bank, IDFC First Bank, HSBC Bank, the RBI said in a release.
What About the Retail Segment?
It also announced that the first pilot in the digital Rupee- Retail segment
is planned for launch within a month,
in selected locations in closed user groups comprising customers and merchants.
Difference Between Digital Currency & Cryptocurrency?
A cryptocurrency is a decentralized digital asset and a medium of
exchange based on blockchain technology.
however, it has primarily controversial due to its decentralized nature,
meaning its operation without any intermediary like banks, financial institutions,
or central authorities.
on the Contrary, Central bank digital currency (CBDC) issued by the
The Reserve bank of India (RBI) will be a legal tender in digital form.
The RBI has repeatedly expressed concern about private
cryptocurrencies such as bitcoin, ether, and others are being used for
money laundering, terror financing, and tax evasion.
The introduction of its own CBDC has been viewed as a means of bridging
the benefits and risks of digital currency.
BENEFITS OF THE DIGITAL RUPEE –
Apart from reducing the transaction cost, having a digitized currency
will make it easier for the government to access all transactions
happening within the authorized networks.
“It will become impossible to avoid the gaze of the government,
thus subjecting every transaction to prevalent law within the country.
Hence, the government will have better control over how money leaves and enters the country,
which would allow them to create a space for better budgeting and economic plans for the future and overall are much safer environment said Archit Gupta”
Another benefit of digital currency is that they do not get torn, burnt, or physically damaged. Neither can they be physically lost.
“The lifeline offer digital currency will be identified compared to physical notes “he added
The RBI has been exploring the props and cons of a central bank digital currency for some time and is working towards a strategy to implement it in a phased manner, it said earlier this month.