Reserve Bank of India is considering bringing its digital currency (virtual currency) into the country. If everything goes well then digital currency can be started in the country. Soon an Inter-Departmental Committee of RBI is going to take a decision on this.
RBI believes that the need for virtual currency has been felt for a long time due to the rapidly changing circumstances of the payment industry, the trend of private digital tokens and rising expenses in preparing paper notes or coins. Has been
The Central Bank Digital Currency (CBDC) is a legal currency and is the digital bank’s central bank liability available in sovereign currency. It is also recorded in the balance sheet of CBDC Bank. CBDC is an electronic form of currency that can be converted from cash.
According to RBI, if digital currency comes into practice, then money transaction and transaction methods can be changed. This will curb black money. The committee says that digital currency will make it easier to follow the monetary policy. Digital laser technology (DLT) should be used in this. It will be easier to detect transactions abroad with DLT.