Reserve Bank of India
Reserve Bank of India is considering bringing its digital currency (virtual currency) into the country. It is an electronic form of currency that can be converted or exchanged in cash.
- January 26, 2021, 3:14 PM IST
The RBI said that in view of the rapidly changing scenario of the payments industry, the introduction of private digital tokens and increasing expenses related to the management of paper notes or coins, many central banks worldwide are considering bringing digital currency (CBDC). RBI has also formed an inter-departmental committee to study the possibilities of the central bank’s digital currency and to set guidelines for them.
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He said that the backbone of digital currencies like Bitcoin is blockchain or distributed laser technology. They have great importance for the macroeconomy and we need to adopt it. We also believe that it should be encouraged for the benefit of the economy.What is CBDC
CBDC is a legal currency and digital bank centrally available in sovereign currency. This is recorded in the bank’s balance sheet. It is an electronic form of currency that can be converted or exchanged in cash issued by RBI.
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These will be beneficial
According to sources, if digital currency comes into practice, then money transaction and transaction methods can be changed. This will curb black money. The committee says that digital policy will make it easier to follow the monetary policy. Digital laser technology (DLT) should be used in this. It will be easy to detect transactions abroad with DLT.