RBI digital currency: The scale at which cryptocurrencies have been invested in the Corona era has forced the Reserve Bank of India to speed up its digital currency plans. According to the latest information, RBI has intensified the action plan regarding its own digital currency and its pilot testing will also start very soon.
Till now RBI has not given legal recognition to private cryptocurrencies but the Supreme Court has also lifted the ban on its trading.
Actually the acceptance of cryptocurrencies is increasing very fast in the whole world. This is the reason why central banks around the world have started work on their digital currency (CBDC / Central Bank Digital Currency).
According to a report published in the Economic Times, 86 percent of the world’s central banks are currently working on the possibilities of Central Bank Digital Currency (CBDC), while 14 percent of central banks have started working on the pilot project.
Central bank considering many aspects
RBI Deputy Governor T Ravi Shankar said that we are moving in this direction in a phased manner. Very soon pilot testing will also be done for its use related information. He said that the Reserve Bank is looking at whether the digital currency will be used in retail or will be used in wholesale.
Technology will be centralized or distributed. Will it be issued by RBI itself or will it be issued by different banks. Necessary changes will also have to be made in FEMA, IT Act, Coinage Act, RBI Act to prevent any wrong thing including money laundering. He said that with the introduction of digital currency, the dependence on cash will reduce and the expenditure on printing currency will be curbed.
How will RBI’s digital currency be?
Regarding how the CBDC of the Reserve Bank will be, Deputy Governor Shankar said that it will continue to get legal recognition from RBI. The form of this currency will be digital.
Apart from this, there will be no change regarding its value. For example, a 10 rupee note and a 10 rupee digital currency, both will have equal value and can also be exchanged without any interruption. At present, apart from RBI, the central banks of countries like China, England and Russia are also considering bringing such digital currency.
Update on July 25, 2021 @ 7:02 am