The era of digital transactions has started in India, people here do not want to keep cash anymore – because the people of India are now fiercely using online payment facilities like UPI, phone pay, Google pay.
And for this reason, perhaps digital currency i.e. virtual currency is being started by the government in the country of India, and this beginning is being done by the Reserve Bank of India.
This digital currency will also be known as Central Bank Digital Currency (CBDC).
In this article we will talk about what is this digital currency? What is its name ? And will the general public be able to use the digital currency or not? You will get the answers to all the questions on this article, so definitely read this article till the end.
What Is Digital Rupee
This digital rupee, based on blockchain technology, is a kind of digital form of currency notes. Which was started from 1 November 2022 for wholesale transactions ie wholesale transactions and on 1 December 2022 it has been launched in retail for all people.
This method has been adopted by the Reserve Bank of India to promote digital currency in India and to make cashless payment more and more popular.
Any such digital currency i.e. this digital rupee, spent by us will be exactly the same as we spend money in the form of notes from our purse. But it will be very different from other types of digital wallet and UPI payment, the complete control of this digital rupee will be with the Reserve Bank of India.
Digital currency to be launched by the Indian government – to be known as Central Bank Digital Currency (CBDC) or Digital Rupee .
Types of Central Bank Digital Currency (CBDC)
Retail (CBDC-R) – Retail (CBDC) can be used by everyone, including private sector, non-financial consumers and business people .
Wholesale (CBDC-W) – Wholesale (CBDC) can only be used by selected financial institutions .
Digital Rupee Based On Blockchain Technology
Digital Rupee based on blockchain technology .
This digital crypto currency, which is called Digital Rupee, is built on the technology of blockchain technology. Block chain technology is the technology that is also used on crypto currency.
According to the Reserve Bank of India, the value of this digital rupee will be equal to the existing currency in India.
It will be issued as a legal tender to all citizens, businesses, government and others.
And once this digital currency comes into the market, people will have minimum need to keep physical money with them and people will be able to make more and more payments through this digital currency which will be based on blockchain technology.
Benefits of Digital Rupee
- In digital Rupee, people will not need to carry more and more cash.
- Illegal things like black money and money laundering will be banned.
- Digital economy will be strengthened under Digital India.
- There will be no hassle of bank account check transaction and check etc.
- Will also get rid of the problem of fake currency.
- Prevention of illegal currency coming from outside.
- It will be easier to collect tax from people.
- There will be a huge reduction in the cost of printing notes to RBI.
- Transaction done in digital form is as easy as any other mobile wallet.
- Digital Rupee will work even if there is no internet connection.
- You will be able to convert digital money into cash very easily.
Disadvantages of Digital Rupee
- One of the major disadvantages of digital rupee is that due to this, the privacy of money related transactions will almost end.
- There will be no interest on digital rupee because according to the Reserve Bank of India, if interest is given on digital rupee, then there may be instability in the currency market and people will start converting money from their savings account into digital currency.
- Where cash transactions used to be done secretly by the people, now after the advent of digital currency, the government will keep an eye on any transaction.
Is Digital Rupee A Cryptocurrency?
No it is not cryptocurrency, it is completely different from cryptocurrency.
Difference between Cryptocurrency and Digital Rupee
If crypto currency and this digital rupee are compared, then it is completely opposite to each other. Because there is no control of any government or central bank in crypto currency at all, and the value of this crypto currency also sometimes decreases and sometimes increases.
But if we talk about the digital form, it will be fully controlled by the government, that is, the Reserve Bank of India. There is no limit of quantity in this digital form, and its value is taken equal to cash rupees.
This means that you will get all the features like physical currency in this digital note as well and you can do any type of transaction through this digital currency i.e. digital rupee, as you used to do through cash.
How Will The Digital Rupee Work
If you wonder how this digital currency will work, then you can rest assured, this digital currency will be used everywhere just like the notes kept in your purse.
Just like you keep your money in the bank and use it, in the same way you will be able to keep this digital currency in your bank and track it easily through your digital wallet.
Currently this digital currency will be distributed to the people in India through 4 banks and this currency will be safe in the applications available by these banks only.
Through this application, you can use it very easily anywhere, the circulation of this digital rupee will be fully controlled by the Reserve Bank of India.
Digital Rupee Started As A Pilot Project
At present, this digital currency has been launched as a pilot project and in the initial phase it has been launched only in Delhi-Mumbai-Bengaluru and Bhubaneswar. After this in its second phase it will be available for use in 9 cities which will include Ahmedabad, Guwahati, Gangtok, Indore, Hyderabad, Lucknow, Kochi, Shimla and Patna.
Banks Involved Under The Pilot Project
In its initial phase, this digital rupee will be available only through a few banks, in which State Bank of India, ICICI Bank, IDFC First Bank, Yes Bank will be part of its pilot project. Later Union Bank of India, Bank of Baroda, HDFC Bank and Kotak Mahindra Bank will also join this project.
FAQs
How will digital currency work?
If you wonder how this digital currency will work, then you can rest assured, this digital currency will be used everywhere just like the notes kept in your purse.
Just like you keep your money in the bank and use it, in the same way you will be able to keep this digital currency in your bank and track it easily through your digital wallet.
What is the price of digital rupee?
1 digital Rupee is equal to Re 1 cash
Is digital money real money?
This digital rupee, based on blockchain technology, is a kind of digital form of currency notes.
digital rupee launch date
This digital rupee, based on blockchain technology, is a kind of digital form of currency notes. Which was started from 1 November 2022 for wholesale transactions ie wholesale transactions and on 1 December 2022 it has been launched in retail for all people.
How can I buy digital rupees?
In its initial phase, this digital rupee will be available only through a few banks, in which State Bank of India, ICICI Bank, IDFC First Bank, Yes Bank will be part of its pilot project. Later Union Bank of India, Bank of Baroda, HDFC Bank and Kotak Mahindra Bank will also join this project.
Is digital currency legal?
yes! Any such digital currency i.e. this digital rupee, spent by us will be exactly the same as we spend money in the form of notes from our purse. But it will be very different from other types of digital wallet and UPI payment, the complete control of this digital rupee will be with the Reserve Bank of India.
Digital currency to be launched by the Indian government – to be known as Central Bank Digital Currency (CBDC) or Digital Rupee .