RBI will launch digital rupee soon


New Delhi: The Reserve Bank of India on Friday released a concept paper on the digital currency. The central bank has announced that it will soon start a pilot program to use the electronic rupee in cases.

The central bank said in a statement that the purpose of issuing the concept note is to create awareness of the central bank’s digital currency and the planned features of the digital rupee.

“It explains the objectives, options, benefits and risks related to issuing a digital currency to the Central Bank of India,” the central bank said in a statement. The note also attempts to explain the Reserve Bank’s approach to the introduction of central bank digital currency.

RBI further added, “The Reserve Bank will soon begin trial launches of e ₹ for specific use cases. With the expansion and expansion of test launches, RBI will continue to communicate the specific features and benefits of e ₹ from time to time.

The concept note also covers important issues such as technology and design options, potential applications of the digital rupee, and issuance procedures.

This is expected to reduce the cost of issuing and transacting funds. Central banks are currently trying to popularize the acceptance of a more acceptable electronic form of currency as the use of fiat currency decreases.

According to the Reserve Bank, a commercial central bank is broadly defined as a legal tender issued digitally by a central bank. Similar to sovereign paper money but in a different format, it can be exchanged on par with existing money and will be recognized as a form of payment, legal tender and a safe place to store value. On the central bank balance sheet, digital central bank currencies will appear as liabilities.

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