Winning Bizness Desk
Mumbai. After a lot of marathon efforts, RBI has launched digital currency in India coining its name as Central Bank Digital Currency (CBDC). At present, it is on a trial basis and 9 banks have been chosen for transactions. Right now digital currency has not been started for everyday payment, but it is being used in the transaction of government securities. According to Reserve Bank Governor Shaktikanta Das, this is a historic moment in the history of India's currency and it will change the whole way of doing business. Shaktikanta Das said that we started the Central Bank Digital Currency Project and as far as the functioning of the entire economy is concerned, the digital currency is a historic achievement for the country. The Reserve Bank of India is the only one among many central banks in the world that has launched a concept like CBDC.
Many advantages of digital currency
According to RBI, it costs 15-17 rupees to print a 100 rupee note in India, besides a currency note lasts for a maximum of four years. The central bank has to print new notes which are worth thousands of crores. In the financial year 2021-22, RBI had printed 4.19 lakh additional notes, which were worth thousands of crores. On the other hand, the cost of digital currency will be almost zero, which will save the government billions of rupees. Settlement of deals in RBI's digital currency is likely to bring down the settlement cost. CBDC is the digital version of currency notes issued by a central bank. Central banks around the world are exploring the possibilities of introducing CBDCs. The government had announced the introduction of digital rupee in the budget of the financial year 2022-23.
About 109 countries running the project of digital currency
About 109 countries of the world are either running the project of digital currency or are considering implementing it. India is also one of these countries. In October 2022, the Bahamas Central Bank was the first central bank in the world to introduce a central bank digital currency. Apart from this, 10 other central banks have introduced digital currency. The Reserve Bank on Tuesday started pilot testing of the country's first digital currency. In the first pilot trial of this digital rupee, several banks, including ICICI Bank and Bank of Baroda, took part on Tuesday for transactions in government securities. According to sources, ICICI Bank sold GS 2027 security to IDFC First Bank using a central bank digital currency (CBDC). He said that there were 48 deals worth Rs 275 crore with Digital Rupee. State Bank of India, Bank of Baroda and Kotak Mahindra Bank also participated in the first pilot trial of Digital Rupee. While announcing the launch of the first pilot trial of digital rupee on Monday, RBI said that it plans to start a pilot trial of digital rupee within a month.
