India’s very own official digital rupees is likely to debut by early 2023, which will mirror any of the currently available private company-operated electronic wallets, but with a change that it will be a sovereign-backed facility. Finance Minister Nirmala Sitharaman said in her budget speech. She also talked about launching a Reserve Bank of India (RBI)-backed ‘digital rupee’ soon.
The RBI has indicated that the digital rupees would be ready by the end of the next financial year 2023.
The digital rupees complex blockchain, being developed by the Reserve Bank, would be able to trace all transactions, unlike the current system of mobile wallets offered by private companies.
Explaining further, the source said that using an electronic wallet, people currently transfer money to the private company that holds the money on his/her behalf and pays to a merchant when there is any transaction.
“Digital currency will also lead to a more efficient and cheaper currency management system. It is, therefore, proposed to introduce Digital Rupees online, using the blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23,” the minister had said.
The exact regulation governing this Central Bank Digital Currency (CBDC) is yet to be finalized.
CBDC is a digital or virtual currency, but it is not comparable to the private virtual currencies or cryptocurrencies 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.
What are Digital Rupees?
Digital Rupees is the legal tender issued by a central bank in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different.
How can we buy Digital Rupees?
You can buy digital rupees via your digital wallet? it will be in digital form and you can use it as current currency.
Can we convert digital currency into cash?
Yes, you can convert digital currency into cash via authorized partners.
Can the bank will accept digital Rupees?
Yes, Banks will accept the India digital rupees only.
Is Digital Rupees legal?
Yes, Digital rupees as legal tender in India because it is issued by the RBI.
Who can buy digital rupees?
Because of a digital and online presence. Anyone can buy digital rupees online globally.