Govt of India announced Digital Rupees. Know all the information here.

 

India is growing day by day and all working and facility sector is becoming digital very fast. From the online shopping, online work, digital study, social media work, digital food site, digital vehicle site and more, India has now announced the digital Rupees. 

 

India has already digital currency for investment purposes like Crypto currency that includes Bitcoin, Litecoins and more. These are the stock markets where people invest their money and according to the market stat and get the money back on percentage basis. 

 

Indian Finance Minister Nirmala Sitharaman has recently announced the budget of 2022 and it includes the all type of tax, the budget for all corporate and other sector and also the big announcement was the Digital Rupees, that means the Reserve Bank of India which is RBI, will launch a central bank digital currency which is CBDC.

 

So let's see all the details information about the digital rupees and government instructions in following. 

 

In the announcement section India's honorable Financial minister said that the Introduction of Central Bank Digital Currency means CBDC will give a big boost to the digital economy of our country. Digital currency will also lead to a more efficient and cheaper currency management system than the physical currency. It is, therefore, proposed to introduce the Digital Rupee, using the blockchain and the other technologies, to be issued by the Reserve Bank of India starting of 2022-23.

 

Although the central bank of India has in the past raised questions on the all private virtual currencies, there have been speculations of it on launching CBDC. The RBI, Reserve Bank of India will launch the Digital Rupee as CBDC, Central Bank Digital Currency. According to the Indian government, Digital Rupee will reduce the dependence on cash and it will also reduce the settlement risk.

 

Now let's talk about the information about the other details. 

 

At first we have to know What is Digital Currency?

 

The official digital currency or digital rupee is a central bank digital currency or CBDC.  This is a legal tender, which can be issued by a country's central bank, but digitally.  It is pertinent to note that the notes or coins that we use as a medium of exchange, so that the seal of the government is given, are all legal tenders.  In this case also the same legal tender, but it is not notes or coins, only through digital.

 

 Cryptocurrency is a decentralized financial token.  And CBDC is a currency like any other currency issued by the central bank, only the form is digital.

 

 

Now we have to know What is CBDC? 

 

So the full form of CBDC is Central Bank Digital Currency. It is a legal tender which is issued by the central bank of India in a digital form. In few simple words, it is just like a flat currency which is just in a different term of form. In that case, the Digital Rupee will be backed by the blockchain technology. You will be able to exchange this currency through the blockchain based wallets. It will also be exchangeable with the Indian government issued money.

 

 

Now let's see What is blockchain technology?

 

A Blockchain Technology is a system of recording data which is almost an impossible thing to change, hack or cheat. It is a digital ledger of transactions which is copied and distributed to the entire network system of devices on the Blockchain Technology. In few simple words, this technology will help you to store and transact the digital currency. As it is very difficult to tamper with it, but it is also one of the safest ways to exchange the currency digitally.

 

How the Digital Rupee will be different from the Bitcoin or any other cryptocurrency-

 

Although CBDCs, Central Bank of India are inspired by the Bitcoin there is  a one big difference. While the Bitcoin, Ethereum, DogeCoin and other popular cryptocurrencies rely on the blockchain technology, these all private currencies lack the status of the legal tender. Although they have gained the popularity in India, their use is still very much restricted. The Digital Rupee is kindly expected to be a legal tender and also it will be legally accepted throughout the whole country, since the RBI, Reserve Bank of India will be behind it.

 

So it was the announcement and all the information about Digital currency, CBDC, Central Bank Digital Currency in details.