RBI’s preparation to launch digital currency is almost complete, know what is the plan next

Shivam Bangwal

3 years ago

RBI’s preparation to launch digital currency is almost complete, know what is the plan next

Finance Minister Nirmala Sitharaman told about the digital currency of the central bank in India at an event in America

In this year’s general budget, the government told about many schemes regarding digital currency. Now RBI is all set to launch it. It will be implemented by RBI after getting permission from the central government.

According to the information, it can be implemented in a phased manner in the last quarter of the current financial year. The scheme of RBI can be implemented in two phases. After two phases, finally the general public will get the freedom to transact or invest in digital currency corporatized by RBI or its other commercial use, while the first is to launch digital currency for wholesale customers on a pilot basis. After that it will be offered to retail customers on a pilot basis. At the same time, officials who are preparing to launch CBDC say that the general public will have another option to pay in the form of digital currency. An advantage to the central bank would be that its cost on money management would be lower. At present, a part of the currency in the system has to be kept in liquid form. This makes it cost more.

Let us tell you that Finance Minister Nirmala Sitharaman told about the digital currency of the central bank in India at an event in America. Sitharaman made it clear that the intention of the government is not to connect the entire population to the financial sector or financial inclusion through CBDC, but it will be mainly for commercial purposes. At the same time, RBI officials say that the new CBDC will be very different from the current system of digital payments in the country, UPI. The biggest reason for this is that CBDC will get the protection of RBI whereas UPI has been developed by another agency NPCI. Also, UPI is not universally recognized internationally. On the other hand, it will be much easier between countries having digital currency system to recognize each other’s currency.

The symbolic picture (Photo : IANS)

Let us tell you that India or RBI are not alone in doing this, but many other countries are also preparing to launch digital currency in the same way. It is believed that this is being done to make the system of financial payment more easy and affordable, eliminating many barriers to the payment path at the global level. It also has an advantage that it will also protect against fluctuations in the exchange rate to an extent. One of the major reasons behind the announcement by the Finance Minister in the General Budget was that India does not want to take the risk of being left behind in the digital currency.

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