Today during the Budget Session held at Lok Sabha, the Finance Minister Nirmala Sitharaman issued a statement about Digital Rupee, which is a Central Bank Digital Currency to be launched in the year 2022-23. But, do you know what is Digital Rupee, and what is its need, who will launch it, and etc?
If no, then have glance on the information provided.Nirmala Sitharaman
What is a Digital Rupee (central Bank Digital Currency) ?
A Digital Rupee is a legal tender issued by a central bank in a digital form. It resembles a fiat currency issued in paper and is transposable with any other fiat currency.
Need for Digital Rupee
Investopedia stated that the goal is to provide users with convenience and security of digital as well as the regulated, reserve-backed circulation of the traditional banking system.
Who will launch Digital Rupee?
Digital Rupee (CBDC) will be launched by the Reserve Bank of India (RBI) from the upcoming financial year. This follows the government’s plan of actions to launch the CBDC that will be promoted by blockchain technology.
What is the Government’s intention behind the Budget announcement?
The Budget announcement determines the government’s aspirations on cryptocurrencies and other virtual currencies. The RBI has on several occasions flagged concerns of money laundering, terror financing, tax evasion, and etc with private cryptocurrencies such as Bitcoin, Ether, and had planned to reveal its own CBDC.
How it is helpful for citizens?
The Reserve Bank of India has revealed officially about how the Digital Rupee will be transacted by citizens. There are also several models initiated by technology officials on how the Digital Rupee could be transacted. The main difference between these is that a Digital Rupee transaction will be on-the-spot as divergent to the present digital payment method.