Govt May Introduce Digital Rupee, But Is India Ready for It?

The government’s decision to introduce digital rupee is a well-timed recognition of the widespread trend towards cashless payments.

Many countries are exploring the benefits and drawbacks of introducing a central bank-backed digital currency (CBDC) or at an advanced stage of implementation as in the case of China or have introduced a digital currency – the Bahamas – where it is known as the sand dollar.

Considering declining cash use and a lack of universal access to the banking system, it is easy to understand the motivation to introduce a digital currency. It would improve financial inclusivity as well as payment efficiency.

The proposed digital rupee would be a form of currency issued digitally by the Reserve Bank and approved by the central government to be legal tender. It will represent a liability of the central bank.

CBDCs are intended to be the digital equivalent of cash for use by end users such as households and businesses and offer a new option to the general public for holding money.

However, they are different from cash, as they come in a digital form unlike physical coins and banknotes.

They are also different from existing forms of cashless payment instruments such as card payments and e-money, as they represent a direct claim on the central bank, rather than the liability of a private financial institution.

>Crime Today News | INDIA


Source

CrimeTodayNews

Crime Today News is an online news website that conveys the data you have to know. We will likely transform information into data and data into understanding.

Related Posts