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Digital Currency: Digital currency will be launched this year, will be different from cryptocurrency in many ways

Photo:FILE Digital Currency

Highlights

  • Digital currency to be recognized by central bank and government
  • The value of digital currency will not change, that is, the value will remain stable
  • With the introduction of digital currency, transaction costs will come down

Digital Currency: Reserve Bank of India (RBI) Deputy Governor T. Rabi Shankar has told that the central bank will launch its digital currency as a pilot project this year. Addressing the India Ideas Summit, he said that Central Bank Digital Currency (CBDC) is the most efficient system for cross border payments. Finance Minister Nirmala Sitharaman had announced in the Union Budget that a CBDC would be launched during 2022-23. However, Rabi Shankar reiterated that RBI is not aiming for a cashless society, but is keen to offer viable options to customers. Shankar further said that the Unified Payments Interface or UPI is likely to become more internationalised.

How different will the digital rupee be from crypto

  1. The digital currency is issued by the central bank of that country. In India it will be issued by RBI only. At the same time, cryptocurrencies are created through mining.
  2. Digital currency is recognized by the central bank and the government of that country. At the same time, cryptocurrencies do not have the recognition of a central bank or government.
  3. The value of digital currency will not change. That is, its value will remain stable as is the rupee now. The value of cryptocurrency fluctuates a lot.
  4. You will be able to convert the digital currency that RBI will launch into Indian currency. Can’t do that in CryptoKitties.

What are the benefits of coming to Digital Rupee?,

  1. With the introduction of digital currency, transaction costs will come down
  2. You will be able to send money to your relatives without paying extra charges
  3. Currently, sending money to other countries in this way has to pay a fee of more than 7%
  4. With this, transactions from the payments system will be done in real time and at a low cost.

digital currency how safe will it be

Since, RBI will issue it, it will be much safer than crypto. The chances of forgery or fraud in this will be negligible.

Will you be able to feel the touch or not?

In digital currency you will not be able to feel the touch which you can do with currency in circulation now. That is, you will not be able to keep digital currency in your home or purse. You will be able to keep it in wallet, bank account or online only.

Digital transactions growing rapidly

He said that RBI is trying to examine the policy on digital payments based on the feedback received from the stakeholders. Highlighting the growing importance of digital payments segment in the country, Shankar said that it is growing at the rate of 40 to 50 per cent per annum. RBI Deputy Governor explained that the central bank is trying to protect data privacy within the ambit of digital infrastructure. He said it is also working on enhancing the technical stability of the digital payments infrastructure. In this regard, Shankar said that RBI is also focusing on enhancing fraud management.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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