RBI Digital Currency launched today! Who is eligible to use it?

The RBI has strongly opposed digital currencies like Bitcoin, which is in the news at the global level. It has previously said that it will be launching its own currency digitally. and there were many proposals that RBI should issue digital currency in India. Accordingly, the central government proposed this in the budget. RBI Digital Currency is implemented as CBDC Central Bank Digital Currency.

What is Digital Rupee?

RBI Central Bank Digital Rupee - Happy2know.com
rbi should issue digital currency in india
and rbi launched digital currency

RBI issues coins and notes that we actually use in our daily life. These can be given to anyone in the country and RBI had assured that it will be safe. Now RBI has released digital coins in the same format. It also guarantees these in the form of coins and notes.

Who can use RBI Central Bank Digital Currency – CBDC?

More than 60 central banks have communicated their interest in CBDCs with a few executions already under pilot across retail and wholesale categories. Many others are researching, testing, or launching their own CBDC Framework.

In the first phase, the following 9 banks are launching the digital rupee:

SBI : State Bank of India - Happy2know.com

SBI – STATE BANK OF INDIA

HDFC BANK LOGO - Happy2know.com

HDFC BANK

ICICI BANK LOGO - Happy2know.com

ICICI BANK

BANK OF BARODA LOGO - Happy2know.com

BANK OF BARODA

UNION BANK OF INDIA LOGO - Happy2know.com

UNION BANK OF INDIA

KOTAK MAHINDRA BANK LOGO - Happy2know.com

KOTAK MAHINDRA BANK

YES BANK LOGO - Happy2know.com

YES BANK

IDFC FIRST BANK LOGO - Happy2know.com

IDFC FIRST BANK

HSBC BANK LOGO - Happy2know.com

HSBC BANK

This digital currency is allowed to buy government securities in the secondary market. Only a few financial institutions are allowed to use this digital currency. That means only 9 banks can use the digital rupee.

Benefits of RBI Digital Currency:

Using digital rupees will facilitate transactions between banks. Digital Rupee does not include printing costs. There is no risk of huge fluctuations in digital currency. It is not put into circulation by other private companies as the RBI itself issues such a digital rupee. This includes Bitcoin as the entire system is under the control of the RBI central government.

Quick retail rupee

In the first phase, the digital rupee is launched practically only for wholesale transactions, depending on its pros and cons, the digital rupee will also be available for the retail sector within another month. It can be used by organizations, institutions, private sector.

What is the e-Rupee?

RBI Central Bank Digital E Rupee - Happy2know.com

Just like the notes and coins we use every day, it is a fixed-value currency. It is virtual which means digital.

The facility will be made available for 9 banks including SBI in the first phase. They use it to trade government securities in the secondary market.

Benefit:

These cannot be stolen, helping to reduce transaction fees. No currency printing and no shipping are required.

RBI Digital Currency Launch Date:

The Reserve Bank Of India as part of its First Pilot Test Program will launch its RBI Digital Currency on November 1, 2022, i.e Today!

RBI Digital Currency, central bank digital currency, rbi launched digital currency | HAPPY2KNOW
RBI Launches Digital Currency on November 1, 2022

RBI Central Bank Digital Currency vs Cryptocurrency:

CBDCCentral Bank Digital Currency is the digital form of a government mandate currency.

Whereas Cryptocurrency is a digital currency that uses a unique encryption algorithm. It is decentralized and monitored by local administration only.

CBDC vs Cryptocurrency - Happy2know.com | RBI Digital currency vs Cryptocurrency

How does CBDC Work?

RBI Digital Currency, central bank digital currency, rbi launched digital currency | HAPPY2KNOW

CBDCs are the digital version of governance money, which verifies transactions using Blockchain Technology and stores transactional data.

Unlike Cryptocurrencies which operate on Decentralized Network, CBDC operates on a centralized network, which is very secure and robust.

Conclusion:

The Revolution of Digital Currency and the initiative taken by the RBI and Central Bank are appreciatable but whether it is user-friendly to the customers is the point to be observed.

Though there were many proposals that RBI should issue digital currency in India, there were denials also as the Cryptocurrencies and Bitcoins couldn’t sustain the reliability factor.

People are used to Online Banking, Cash withdrawals, and UPI and this revolution of the Digital Rupee having both Coins and Notes in form of Digital may seem Hi-Fi for one sector of people but many might find it difficult to adapt. But let us see how the structuring is brought to work practically.

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