RBI launched the country's first digital currency on 1 November i.e. Tuesday. Currently, Central Bank Digital Currency (CBDC) has been issued under a pilot project. SBI, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been selected for this.
Finance Minister Nirmala Sitharaman announced the issuance of digital currency during the budget presented on February 1.
two types of digital currency
There are two types of digital currency – CBDC wholesale and CBDC retail. Starting November 1, the digital currency CBDC is wholesale. It will be used by large financial institutions, including banks, large non-banking finance companies, and other large transactional institutions. After this CBDC retail will be issued. People will be able to use it for everyday transactions.
The value of e ₹ will be equal to the current currency
The value of e ₹ i.e. digital currency will also be equal to the current currency. It will also be accepted as physical currency. With e ₹ there will be no need to keep cash in your pocket. It will also work like a mobile wallet. The bank account will not be required to keep it. With this, you will be able to make a cashless payment.
No need to share information with an unknown person. Privacy will be maintained. Firstly, the dependence on cash will decrease. The cost of printing physical rupees will be reduced. It will help in achieving the target of reducing the cash economy. It will also help in reducing transaction costs.
Question: Will it be like cryptocurrency?
Answer: No, then how will it be, let us know…
CBDC is not a cryptocurrency. The CBDC of the Reserve Bank of India will be a legal tender.
It will be issued by RBI, so there will be no risk of it. This will make it easier to buy in the country.
This private virtual currency will be completely different from bitcoin.
There are many obstacles with private virtual currency and these currencies like bitcoin are not recognized in all countries.
Also, since the private virtual currency is not linked to any government, there is a lot of risk in it.
Question: Is CBDC better than other digital payments?
Answer: Yes, know-how…
Suppose you transact with a CBDC instead of your bank account through a UPI system. In this, there is no need for interbank settlement as soon as the cash is handed over. With this, transactions from the payments system will be done in more real-time and at less cost. This will enable Indian importers to pay digital dollars in real time to US exporters without any middlemen.
Question: Will the introduction of CBDC affect banks?
Answer: Yes, know what kind of effect it will have…
The introduction of CBDC will reduce the demand for transactions for bank deposits. Also, the settlement risk will be less. Being risk-free, CBDC will reduce bank deposits. Also, the government guarantee on deposits will be cut. On the other hand, if banks lose deposits, their ability to build credit will be limited. Because central banks cannot provide loans to the private sector.
Will digital currency prove beneficial for common people?
With the introduction of digital currency, the cost of transactions for common people and businesses with the government will be reduced. For example, a worker in the UAE gets 50% of the salary in the form of digital money. With this, these people can send money to their relatives present in other countries easily and without paying extra charges.
The World Bank estimates that at present, sending money to other countries in this way has to pay a fee of more than 7%, while with the introduction of digital currency it will come down to 2%. With this, low-income countries will get more than $ 16 billion (Rs 1.2 lakh crore) every year.
Also Read: Supreme Court: Right to vote for prisoners, Supreme Court seeks response from Center on PIL
Amidst the G-20 summit, the weather patterns changed in 21 states including the national capital.
The disaster caused by cloudbursts and floods in the hilly states of Himachal Pradesh and Uttarak
Hardeep Singh Nijjar, a resident of Bharsinghpur village in Jalandhar, Punjab, lived in Surrey, C
Trailer Released for Docu-Series on Lawrence Bishnoi; The Salman Khan Chapter Will Also Be Featured
The trailer for Director Raghav Dar's original documentary series, Lawrence of Punjab, offers a g
'My name is Iram. I live in Afghanistan. He has done his Master's at Pune University. When India
On Tuesday, appointment letters for confirmed jobs will be issued to 71,000 youths simultaneously
Jyoti Malhotra's father Harish Malhotra, accused of espionage, said on Thursday that he did not h
Sri Lankan President Anura Kumara Dissanayake has thanked Pakistan Prime Minister Shahbaz Sharif
Cold has been wreaking havoc in Delhi for the last few days. The same harshness of winter continu
India's 'Operation Sindoor' is going on, and once again the Pakistani team has lost badly on the
