Good News: India’s ‘Digital Rupee’ will be launched next year, know how it will work?
Digital Rupee:
By the beginning of 2023, India could have its own official digital currency. It will be identical to the currently accessible electronic wallet run by a commercial corporation, but with the added benefit of a “Government Guarantee.” This information came from a high-ranking government official. Last week, when presenting the budget for the fiscal year 2022-23, Finance Minister Nirmala Sitharaman announced that a central bank-backed ‘digital rupee’ would be implemented soon.
Will be released by the end of the following fiscal year,
On the condition of anonymity, this insider stated that the Reserve Bank’s digital currency will contain unique digits, similar to the Indian rupee. It will be similar to ‘flat’ cash in that it will be in digital form. In certain ways, this might be considered a government-backed digital wallet. The units issued in the form of digital currency will be incorporated into the existing currency. The central bank has stated that the digital rupee will be ready by the end of the next financial year, according to the source. The Reserve Bank’s Digital Rupee blockchain will be able to track all types of transactions. This system is presently unavailable in private company mobile wallets.
People still transfer money to private companies via the electronic wallets of private companies, according to the source. This money is kept by these companies, and they make payments on behalf of customers to merchants, shopkeepers, and other businesses. People would have digital currency in their phones and it will be held by the central bank in the case of the Digital Rupee.
It will be transferred from the central bank to any merchant or other interested party. On this, the government will provide a complete guarantee. According to the source, when money is moved to a company’s e-wallet, the company’s ‘credit’ risk is likewise tied to the money. Aside from that, these businesses impose fees. “I’d rather keep the money in my phone than carry this wallet,” the insider explained.
