RBI Soon Going to Launch Digital Rupee or CBDC in India
To promote digital transactions and keep working with digital world, RBI will soon launch Central Bank Digital Currency (CBDC) or Digital Rupee. On Friday, RBI has also released concept paper regarding this. Digital currency will be cost effective for RBI and customers can easily carry it. It's also safe and secure for customers. RBI will be free from spending lots of money on paper money.
According to the RBI, in the financial year 2021-22 total of 4984 crore rupees was spent on the printing of paper currency. after digital currency, this cost will be saved. According to the RBI, presently 105 countries are planning to bring digital currency. China and South Korea has also started the trial of digital currency.
According to the RBI, in the starting digital currency will be started in the pilot format. RBI did not give any fixed time for this but before the ending year pilot project will be launched. Finance Minister Nirmala Sitharaman has mentioned about the Digital Currency in the current budget. As per RBI, Digital Currency will be the option of Paper Currency and Paper Currency will also run.
Digital Currency will be two types, Retail and Wholesale. Retail Digital Currency will be used by everyone and Wholesale Digital Currency will be used by institutional only. Digital Currency will be available in the form of Token and directly in the account. CBDC will be guaranteed by the central government. Paper notes can be converted into the digital currency and digital currency can be converted into the paper notes also.