Winning Bizness Desk
Mumbai. The RBI has launched the country's first digital currency from November 1, i.e. Tuesday. Central Bank Digital Currency (CBDC) was issued under the pilot project in 9 banks namely SBI, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC. Notably, finance minister Nirmala Sitharaman had announced the issuance of digital currency during the budget presented on February 1.
Two types of digital currency
There will be two types of digital currency – CBDC Wholesale and CBDC Retail. Starting November 1, the digital currency CBDC is wholesale. It will be used by large financial institutions, including banks, large non-banking finance companies and other large transactional institutions. After this CBDC retail will be issued. People will be able to use it for everyday transactions.
Know more about digital currency
The new currency will be based on blockchain technology and a CBDC issued by RBI in digital form will be a legal tender. There will be a CBDC like a currency issued from a central bank, but you will not be able to keep it in your pocket like a note. It will work just like currency. Also, CBDC can be exchanged with notes. It will be reflected in your account in electronic form. Earlier in the RBI report, it was told that with CBDC, you will be able to buy anywhere easily and safely as compared to cash. CBDC is not a cryptocurrency. The CBDC of the Reserve Bank of India will be a legal tender and this private virtual currency will be completely different from bitcoin.
Value of E-₹ equal to the current currency
The value of e ₹ i.e. digital currency will also be equal to the current currency and will also be accepted like physical currency and people will have no need to keep cash in their pockets. It will also work like a mobile wallet. Bank account will not be required to keep it. With this you will be able to make cashless payments. No need to share information with an unknown person. Privacy will be maintained. Firstly, the dependence on cash will decrease and the cost of printing physical rupees will be reduced. It will help in achieving the target of reducing the cash economy. It will also help in reducing transaction cost.