Posted on 03-02-2022 by Admin
Not only the Reserve Bank but central banks around the world are working on digital currency as an alternative to private cryptocurrencies like bitcoin, ether. This will protect you from the loss caused by investing in a private virtual currency ie cryptocurrencies like bitcoin.
It will work just like currency. Also CBDC can be exchanged with notes. It will be reflected in your account in electronic form.
It is an electronic digital currency form of cash. Just like you do cash transactions, you will also be able to do digital currency transactions. CBDCs work somewhat like cryptocurrencies (like bitcoin or ether). With this, the transaction is done without any intermediary or bank. You will get the digital currency from the Reserve Bank and it will reach to whomever you pay or transfer.
When you talk about digital currency or digital rupee, you paid and the other person got it. That is its merit. The digital transaction happening now is the transfer of money deposited in a bank account. But CBDC is going to replace currency notes.
The concept of digital currency is not new. It comes from cryptocurrencies like bitcoin, which were launched in 2009. After this, from Ether, Dogecoin to fifty cryptocurrencies have been launched.
Private cryptocurrencies are issued by private people or companies. It does not monitor it. People are transacting anonymously, due to which cryptocurrencies are being used in terrorist incidents and illegal activities. They are not supported by any central bank. This currency is limited, due to which its value varies according to supply and demand.
Talking about the digital rupee, it is being launched by the central bank around the world, ie, the Reserve Bank of India. There is neither a quantity limit nor an issue of financial and monetary stability. One rupee coin and digital rupee have equal strength. But the monitoring of the digital rupee will be possible and who has how much money, it will be known to the Reserve Bank.
What is Digital Rupee Digital Currency i.e. CBDC, when will it be launched, know which country is the digital currency, know everything