What is Digital Rupee ? What are Benefits of Digital Rupee ?
What is Digital Rupee?
A Central Bank Digital Currency (CBDC) or Digital Rupee is a digital form of currency notes issued by a central bank. Digital currency or rupee is an electronic form of money, that can be used in contactless transactions. Presenting Union Budget 2022, Finance Minister Nirmala Sitharaman announced that the Reserve Bank of India (RBI) would be rolling out its digital currency soon.
Benefits of Digital Rupee
Apart from reducing the transaction cost, having a digitised currency will make it easier for governments to access all transactions happening within the authorized networks. “It will become impossible to avoid the gaze of the government, thus subjecting every transaction to relevant laws within the country. Hence, the government will have better control over how money leaves and enters the country, which would allow them to create a space for better budgeting and economic plans for the future, and overall a much safer environment,” said Archit Gupta.
Types of CBDC
CBDC can be classified into two types:-
1) Retail (CBDC-R): Retail CBDC would be potentially available for use by all
2) Wholesale (CBDC-W) is designed for restricted access to select financial institutions.
