Digital Rupee Currency of India

Indian Government will be introduced a digital rupee in the next financial year. This Indian digital rupee will be similar to other private digital currencies. In the recent 2022 budget session finance minister Nirmala Sitharaman was clear that by 2023 India have its own blockchain digital currency. The government will introduce electronic wallets like other private players. Also,read: Cryptocurrency Ban in India soon, Allow RBI Digital Coin | What are Private Cryptocurrencies?

Digital Rupee electronics currency will be a legal tender of India and a central bank-backed currency. Expert indicates that digital currency shall not be very different from fiat currency. It will be working with Government developed digital wallet. The digital rupee will be ready by next financial year. Also,read: How to Purchase Bitcoin within 5 Minutes through WazirX | How to Purchase Bitcoin, Ethereum | What is Maker Fee and Taker Fee?

RBI  Track All Transactions

RBI can track all transactions regarding the digital rupee blockchain like other digital wallets offered by private companies. A user can transfer money to the private company that holds the money on his/her behalf and pays to a merchant when there is any transaction. After you transfer your money to the e-wallet of a private company, they levied some charges, and also the credit risk of that company is also attached to the money. 

In the 2022-23 Budget speech, Finance Minister Mrs. Nirmala Sitharaman had said that the introduction of Central Bank Digital Currency (CBDC) will give a big boost to the digital economy of India. Also,read: How to apply for Google Pay Loan: How to avail of Google Pay Loan in 2021: Easy ways for getting loans from Google Pay

The Finance Minister had said that “Digital currency will also lead to a more efficient and cheaper currency management system. It is, therefore, proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23,”.

Regulations of Digital currency

Governing authority of the Central Bank Digital Currency (CBDC) is yet to be decided on the full roadmap of launching India’s own blockchain. Digital currency is a virtual currency but it is not comparable to the other or existing private virtual cryptocurrency. Because existing Private virtual cryptocurrencies do not represent any person’s debt or liabilities as there is no issuer. But CBDC digital currency will regulate as per RBI. Also,read: What is E-Passport and How it will be Worked? | New Microchip will Secure E- Passport and launched in 2022-23

CBDC is a digital or virtual currency but it is not comparable to the private virtual currencies or cryptocurrency that have mushroomed over the last decade. Private virtual currencies do not represent any person’s debt or liabilities as there is no issuer. The government has already said that private cryptocurrencies will never be legal tender. The RBI has been strongly opposing private cryptocurrencies as they could have implications on national security and financial stability.

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