RBI the Reserved Bank of India on Tuesday Introduced its most awaiting Central Bank Digital Currency (CBDC) or we can call it Digital Rupee. This Digital Rupee coming on 1 December. Digital Currency is a form of digital token having same denominations as paper currency or coin.
On Tuesday RBI (Reserve Bank of India) announced the Launch of The first pilot for e-rupee or Digital currency. In the first Pilot project RBI has Four Partners Banks such as , State Bank of India, ICICI Bank, Yes Bank, IDFC First Bank in Mumbai, New Delhi, Bengaluru, Bhubaneswar. RBI also Announced that Pilot would cover only the closed user group CUG comprising participating customers.
What is Digital Rupee Currency?
Digital Currency is legal tender means this will be act as legal currency. Unlike Cryptocurrencies the digital Rupee is issued in the same denominations as paper currency. However this currency will going to Launched from 1 December in Mumbai, Delhi, Bengaluru, and Bhubaneshwar. Than other day will Launched in nine other cities. On 1 November 2022 pilot project digital Rupee started in Whole sales.
Security and qualities of Digital Currency:
On 1 December RBI Announced that Training of Closed User Group(CUG) will going to held in selective cities. This Pilot Project will going to Analyze Production, Distribution and Retail of Digital Currency in Real time. Before that on 1 November the pilot project had started for whole sale usage of this currency. The Digital currency has features similar to note currency. One can change the Digital currency into cash. Unlike Cryptocurrencies the values of digital currency will not fluctuate.
This is a Digital form of the cash currency. Like cash currency one can able to do dealing in digital currency also. CBDC work similar as Bitcoin or cryptocurrencies.
How Digital currency will work?
(CBDC) central bank digital currency will work like Blockchain Technology. Digital currency or rupee will be distributed through intermediaries like banks to customers. Users will be able to make payments through e-rupee by using QR codes displayed at merchant location like online transactions. RBI also said that pilot will test “robustness of the entire process of digital rupee creation, distribution and retail usage in real time.
Finance Minister Nirmala Sitharaman announced about the digital currency in the budget of 2022-23. According to our Finance Minister Users have to pay 30% tax on digital currency.
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