INSUBCONTINENT EXCLUSIVE:
What Are The Advantages Of A Digital Rupee?There has been a lot of talk about the Central Bank Digital Currency (CBDC), or the digital
rupee, the RBI has said it is working on
Many countries have said they are working on similar currencies of their own.The need for digital currency has risen due to the growing
importance of cryptocurrency
Central banks worldwide fear the crypto industry, which essentially bypasses regulatory oversight, can threaten the existential financial
system and thus want to manage its rapid adoption by their peoples.The supporters of the digital rupee say it can revolutionise the way we
Still, its critics cite the lack of adequate infrastructure and hacking-related threats to call for more deliberations
transparency and efficiency
It will be based on blockchain technology, allowing for real-time tracking and ledger maintenance
It is also hoped that a digital rupee will propagate financial inclusion and effective fiscal and monetary policy implementation in a large
could be entered into the ledger in real-time
Today, exporters have to go through multiple layers of banks, each levying a transaction cost
would be backed by the RBI
As opposed to the currency notes, there is no risk of damaging a digital rupee by way of wear and tear or losing it during movement.The RBI
will launch the digital rupee in the next financial year (FY23).
