Finance Minister Nirmala Sitharaman has announced that the Bank of India (RBI) reserves will launch the central bank’s digital currency (CBDC).
“The introduction of the central bank’s digital currency (CBDC) will provide a big boost for the digital economy.
The digital currency will also lead to a more efficient and cheaper currency management system.
Therefore, it is proposed to introduce digital rupees, using Blockchain and technology Another, which will be issued by the Reserve Bank of India from 2022-23, “FM said.
Even though the central bank in the past raised questions about private virtual currencies, there was speculation launching CBDC.
RBI will launch a digital rupee as a CBDC.
According to the government, Digital Rupees will reduce dependence on cash and it will also reduce the risk of completion.
What stands for CBDCCBDC for the central bank digital currency.
This is a legal tender issued by the central bank in digital form.
With simple words, it’s like a flat currency just in a different form.
In this case, digital rupees will be supported by Blockchain technology.
You will be able to exchange this currency through a Blockchain-based wallet.
It will also be exchanged for the money issued by the government.
What is Blockchain technology? A blockchain is a data recording system that is almost impossible to change, hack or cheat.
This is a ledger transaction copied and distributed to all network devices in Blockchain.
With simple words, technology will help you save and transact the digital currency.
Because it is difficult to damage, it is also one of the safest ways to exchange currencies digitally.
How digital rupees will be different from Bitcoin or other CRYPTOCURRENCY other CBDCs inspired by Bitcoin there is one big difference.
While Bitcoin, Ethereum, Dogecoin and other popular Cryptocurrency depend on Blockchain technology, this private currency has no legal tender status.
Even though they have gained popularity in India, its use is still very limited.
Digital rupees are expected to be legal tenders and will be legally accepted throughout the country, because the RBI will be behind him.