India’s digital currency
The Reserve Bank of India’s decision to launch digital currency or central bank digital currency (CBDC) is a bold attempt to combat the growing uncertainty around cryptocurrencies in India and to internationalize the country’s currency, as per the report of GlobalData.
India is following China, which is also testing its digital yuan. It will help reduce operational costs for cash management, lower settlement risk, and improve financial inclusion. Cryptocurrencies, despite the lack of formal regulation, are increasingly challenging the traditional financial system.
Also, many retail investors who have not been able to invest in cryptos see it as a missed opportunity. The RBI fears that the wider adoption of cryptos could prove to be a threat to the country’s financial stability. The development of a digital currency is a notable countermeasure to ensure progress and integrity.
The analysts say, India spends heavily in printing physical currency and hence the digital currency will help curb some of the cost. A digital currency could be a cost-effective solution for cross border payments, as India is the largest recipient of remittances globally.
India must ensure partial anonymity for the digital currency. China and the Bahamas are already following anonymity for lower tier transactions to achieve the same anonymity as cash. The degree of anonymity must be inclusive and responsive to the changes in the local market. Data protection and privacy concerns must also be addressed to ensure adoption.
RBI must connect its digital currency to the existing digital payment modes, especially UPI, which is becoming more common in the country. Adding offline capability to the digital currency will also improve financial inclusion and adoption, even in areas with limited connectivity. The offline capability will also serve to differentiate the digital currency from the existing digital payment services.
INTERVIEWS
TOP VIDEOS
SECURITY
SOFTWARE
Yudiz Solutions files draft papers for IPO
A blockchain, artificial intelligence and game development company, Yudiz Solutions Limite...
Adobe unveils Content Supply Chain Solution
At Adobe Summit 2023, Adobe announced Content Supply Chain solution, the most comprehensiv...
Aerospike boosts Community Leadership and Enterprise Support for Spring Framework
Aerospike has released expanded functionality and engineering support for the Spring Frame...
START - UP
PERIPHERALS
INDUSTRY EVENTS
Providing multilingual internet crucial to bridge digital divide in India: MeitY Addl Secy
Calling India the right place for Universal Acceptance Day celebrations, Bhuvnesh Kumar, I...
The new wave of start-ups in the country is a testimony to the entrepreneurial temperament of the youth
PHDCCI conducted “Bharat Startup Summit, 2023” The conclave through discussion...
Team Computers hosts an Experiential CXO Meet with Google Cloud in Goa
Team Computers has held an experiential event in collaboration with Google Cloud, bringing...
BPE showcases Energy Storage Solutions at ELECRAMA
Best Power Equipments (BPE) has presented Energy Storage Solutions (ESS) at ELECRAMA. The...
E- COMMERCE
