India’s very own official digital rupees means digital currency 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. It will be first Indian digital currency, officially.
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 a private company that holds the money on his/her behalf and pays 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.
The CBDC will launch it in two forms, wholesale & retail
Wholesale CBDC:- Wholesale CBDC rupees is designed for restricted access to select financial institutions. the wholesale CBDC is designed for the settlement of interbank transfers and related wholesale transactions.
Retail CBDC:- Retail CBDC is an electronic version of cash primarily meant for retail transactions. You can use it without the internet. Nine banks, viz., State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC have been identified for participation in the retail currency pilot.
Now CBDC/ RBI has launched its pilot project via four banks along with ICICI Bank. You can download the ICICI bank CBDC wallet from ICICI Bank digital wallet Link, Click Here
Soon you will get all the Digital e-rupee loans on your app. All the banks are planning to provide digital e-rupee loans via the CBDC app. RBI is working on it to provide. With the help of a single RBI CBDC e-rupee app, you can apply for a digital erupee loan from any bank in your digital wallet.
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What is Digital Rupee?
Digital Rupees is the legal tender issued by a central bank in 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 your 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 currency?
Yes, Banks will accept the Indian digital rupees only.
Is Digital Rupees legal?
Yes, Digital rupees are legal tender in India because it is issued by the RBI.
Who can buy digital currency?
Because of a digital and online presence. Anyone can buy digital rupees online globally.
When CBDC will launch Wholesale Digital Rupee?
As per the sources, the CBDC will launch Digital Rupee on 01 November 2022 as a pilot for bankers only.
When CDBC launched Retail Digital currency?
The CDBC launched the retail digital rupees on 1st December 2022 in five metro cities ie Mumbai, Delhi, etc.