In this concept note, the central bank has given all the details related to the central bank digital currency (CBDC). This explains the purpose, benefits and risks of digital rupee. In this concept note, the RBI has also explained the procedure followed by the Reserve Bank for the introduction of CBDC. From time to time RBI will inform the public about the special features and benefits of this digital rupee.
“E-Rupee is an additional option to the currencies currently in circulation. But there is no big difference compared to Bank Notes (Currency Notes). It is only available in digital form. The e-rupee has the same value as currency notes. Moreover, it can be used easily. Transactions can be completed quickly in this currency. It also has all the transactional benefits of other digital money,” RBI announced.
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The RBI said that after the introduction of CBDC into the banking system, they will look into all the difficulties in terms of monetary policy, financial stability and privacy issues. RBI defines CBDC as a legal currency issued by central bank in digital form. It can be used as a payment bridge. Can be stored safely.
Finance Minister Nirmala Sitharaman announced this currency in the Union Budget 2022-23. He said that RBI will launch digital rupee in the current financial year. RBI Deputy Governor T Ravi Shankar, who gave an interview last month, also said that the digital currency will be launched in a pilot project this year. It is said to be the most efficient method for cross-border payments. He said that CBDC will eradicate private virtual currencies like Bitcoin.
It is known that the RBI and the Ministry of Finance are strongly opposed to crypto currencies like Bitcoin. They warn that there are serious risks due to crypto currencies. Nirmala Sitharaman has also proposed a 30 percent tax on profits earned on transfer of virtual assets in this budget. This tax policy has also been implemented from April 1. The Central Government is yet to give its clarity on whether to regulate Crypto Currencie… or ban it…
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