A concept note about an Indian digital currency was published by the Reserve Bank of India (RBI). The intention, according to its note, is to raise awareness of CBDCs in general and the intended features of the Digital Rupee (e-Rupee). The digital version of the nation’s official currency is known as CBDC, or Central Bank Digital Currency. The RBI has published a concept paper on digital currency and promises to shortly begin a pilot programme for it.
According to the Indian central bank, CBDC is a digital form of legal money that is issued by the central bank. Similar to sovereign paper money but in a different format, it can be exchanged at par with current money and will be recognised as a means of payment, legal tender, and a secure place to keep wealth.
Indepth details The RBI has published a concept paper on digital currency and promises to shortly begin a pilot programme for it:
The RBI note details the goals, options, advantages, and drawbacks of issuing a CBDC in India. The memo also aims to describe the Reserve Bank’s strategy for introducing the CBDC.
RBI stated: “This Concept Note was released with the intention of raising awareness about CBDCs in general and the proposed features of the Digital Rupee (e). It describes the goals, options, advantages, and risks of India’s CBDC issuance. The Note also aims to describe the Reserve Bank’s strategy for bringing in the CBDC.”
The central bank also announced that the “Digital Rupee” pilot programme for particular use cases will shortly begin.
“In addition to the existing payment options, there will be the e-rupee. It is essentially identical to banknotes, but because it is digital, it is probably simpler, quicker, and less expensive. Additionally, it offers all the advantages for transactions of other types of digital money “The note from the central bank stated.
It is important to remember that India would introduce its own digital currency, a CBDC named the “Digital Rupee,” which would be issued by the RBI, as part of the 2022 Union Budget, which was announced by Finance Minister Nirmala Sitharaman in February.
Numerous countries around the world, including China, Ghana, Jamaica, and other European countries, are investigating their CBDC products. Some people have already started using their virtual currencies. For instance, China’s e-yuan was used at the Winter Olympics, while Europe has been testing the digital Euro CBDC since June 2021. Jamaica’s CBDC JAM-DEX was introduced in June 2022.
There are nine nations that have completely implemented central bank digital currencies, according to the Atlantic Council’s Central Bank Digital Currency Tracker (CBDC). The Caribbean is home to eight of the nine nations. The Sand Dollar of the Bahamas, which was introduced in 2019, was the first CBDC in the entire globe.
16 of the G20 nations are already in the development or pilot stage, while 19 are considering starting their own CBDCs. South Korea, Japan, and Russia are included in this. India has now also been included to the list.
