Know About  RBI Digital Currency

A digital version of currency notes issued by the central bank is known as the “digital Rupee” or Central Bank Digital Currency (CBDC), as the name suggests.

All the advantages that cryptocurrency and digital payments have will be available through CBDC. Similar to digital cash, the digital rupee issued by the RBI cannot be physically harmed or lost. Its lifespan is therefore limitless.

According to the RBI, the digital rupee will improve the effectiveness of the interbank market. Settlement in central bank currency would result in lower transaction costs, eliminating the requirement for collateral to lessen the risk of a settlement.

Origin of CBDC:  Finance Minister Nirmala Sitharaman initially mentioned the idea of CBDC in the FY23 budget when she stated that the RBI would launch the digital rupee this fiscal.

The digital currency project of RBI:  The RBI will issue the Digital Rupee (e₹), also known as the e-Rupee or e-INR, as a form of central bank digital money (CBDC).

The“Concept Note” of the RBI addresses the goals, options, advantages, and hazards of issuing an electronic CBDC in India (digital rupee). In addition to the present types of money, the e₹ will offer another choice.

How can I purchase and use Indian RBI digital Rupee? The RBI introduced the digital rupee on 1 December 2022, in four Indian cities. Residents of Mumbai, Bengaluru, New Delhi, and Bhubaneswar can now swap digital rupees using digital wallets provided by the collaborating bank.

Can I send family and friends digital currency? Your actual currency has been converted into digital form. As a result, you can use them in transactions and send them to friends and family just like regular money.

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