Digital Currency: Market ups and downs also matter in crypto. It is launched by RBI i.e. Central Government and it is controlled only by them. Crypto, on the other hand, is a private enterprise, which carries a lot of risk.
Digital currency has been launched
The Reserve Bank of India has launched a digital currency with the start of the month of November. The digital rupee will now be widely used through its first pilot test program. For this Reserve Bank A total of nine banks including State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC have been included under this pilot project. By means of digital rupee, people’s dependence on cash will be reduced and in a way it will also prove to be a good option for wholesale transactions. So far the transaction is done through challan rupees, check or any banking system. But digital notes will not require any hard currency. You will be able to do wallet to wallet transactions.
Get expert opinion
Economic expert Vijay Sardana says, “I think this project will reduce black money as the government may make its use mandatory in the future, for example for more than five thousand transactions. So that the government can directly monitor the expenditure incurred by each individual. Dependence on hard currency will decrease. This is a very good start for the government.
How will digital currencies differ from crypto currencies?
This is based on rupee to rupee transactions, the ups and downs of the market in crypto also matter. It is launched by RBI i.e. Central Government and it is controlled only by them. Crypto, on the other hand, is a private enterprise, which carries a lot of risk.
How is it different from e-wallets like UPI?
There is a limitation in e-wallet that there will be a big security concern like what will be done in case of money transfer to wrong number. The details regarding this will also be clarified by RBI.
Will currency notes be demonetised?
No, it won’t. But it will be convenient. Now if your notes get torn or stolen then there will be a problem. But digital currency will not have all these problems. There will be no tension during the journey. Now it is difficult to transfer two lakh five lakh. Which will be easier now. Efforts are also being made to upgrade cash transfers.