Central bank looks at the future of digital currencies
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Central bank looks at the future of digital currencies | Central bank looks at the future of digital currencies
gujaratsamachar.com/news/business-plus/central-bank-looks-at-the-future-of-digital-currencies
========================================The Reserve Bank of India has been issuing a Central Bank Digital Currency (CBDC) on an experimental basis since the second half of 2022. The Central Bank Digital Currency, based on blockchain technology, was introduced among a limited user group in the retail sector, whose participants include consumers and merchants. The experimental Central Bank Digital Currency currently facilitates person-to-person transactions and person-to-merchant transactions using digital currency wallets. After the experience so far, the Reserve Bank has proposed that the programmability of this currency (in this case a computing system capable of understanding, accepting and following instructions) and offline functionality should be tried so that not only digital, but also this currency is adopted. The currency will increase, but it will also help in achieving public policy goals.
As the central bank said in its announcement, 'programmability' will allow users such as government agencies to ensure that payments for certain benefits are made. This means that the chosen underlying rules will restrict the use of the currency. With such features, the government will also be in a position to ensure that the currency is used properly. For example, if the government or any other agency pays school students in digital currency to buy books, it will be used only in bookstores.
As per the design, if the currency is not used for a certain period, it can be returned to the sender's account. This will ensure that the money is spent properly. This will also reduce the risk of fraud. Similar methods can also be used by private companies to meet specific spending needs.
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Indigenous digital currency to rocket! RBI to test by giving allowances to officials, will crypto get competition? - RBI to test central bank digital currency CBDC with its own officials
Indigenous digital currency to rocket! RBI to test by giving allowances to officials, will crypto get competition?
Curated by Rajesh Bharti | Navbharattimes.com 29 Dec 2024, 8:28
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Indian digital currency: The Reserve Bank of India is taking several steps to promote indigenous digital currency. The Reserve Bank will test it with its officials for Central Bank Digital Currency (CBDC). Indigenous digital currency is still being used as a pilot project. Know what the Reserve Bank has planned:
Highlights
The Reserve Bank is busy promoting central bank digital currency.
Now the bank will give this as reimbursement to its officials.
This will be a test, if successful it can be taken further.
Indian Digital Currency CBDC
Focus on promoting indigenous digital currency
New Delhi: Native digital currency is being promoted to counter cryptocurrencies. The Reserve Bank of India (RBI) will test it with its officers for Central Bank Digital Currency (CBDC). The central bank has recently decided to deposit a part of the allowances for reimbursement in the CBDC wallet of RBI officers.
Homegrown digital currency i.e. CBDC is considered by central banks as a safe and smart payment option as well as a step to counter cryptocurrencies. It will be completely digital and will be in a digital wallet. Through this, you will be able to make payments anywhere. It will be completely legal in India. Currently, payments in cryptocurrencies are not legal in India. However, many companies and institutions in many other countries accept payments in cryptocurrencies.
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Steps to encourage people
According to the Economic Times, an internal communication was sent to senior officials on December 27. According to this, 'Digital currency will be deposited by Reserve Bank officials to enhance the CBDC retail pilot and encourage the use of CBDC wallets. This currency will be deposited as reimbursement for internet/data charges.
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RBI digital E Rupee pilot project Central Bank Digital Currency know all details here
gujarati.indianexpress.com/news/rbi-digital-e-rupee-pilot-project-central-bank-digital-currency-know-all-details-here/5999
Ajay SaroyaOctober 9, 2022
RBI will launch e-rupee, know its benefits and how it will work?
RBI'S digital E Rupee: RBI has announced the launch of digital e-rupee. This Central Bank Digital Currency (CBDC) is said to reduce the use of paper currency in the country and provide protection against the risk of investment in private digital currencies.
RBI will launch e-rupee, know its benefits and how it will work?
The Reserve Bank of India (RBI) on Friday (October 7) announced that it will soon start a pilot project of digital e-rupee (digital E Rupee). The central bank has released a concept note on Central Bank Digital Currency to discuss digital currency.
This concept note has been issued with the aim of spreading awareness among the people, so that people can be made aware of digital currency in a proper way. In addition, the Reserve Bank has said that it will launch an e-rupee pilot parallel to the Indian rupee.
Information has been given about the plan being prepared by the Reserve Bank to launch e-rupee.
Pilot project to be started in 4 government banks:-
A pilot project will be started in four public sector banks. There will be about two broad categories for the use of this e-rupee – retail and wholesale. This concept note discussed issues such as technology and design options of digital currency, use of digital currency and method of issuing digital currency. In addition, the impact of the launch of CBDC on its banking system, monetary policies and financial stability has been examined. It also analyses privacy issues. State Bank of India, Punjab National Bank, Union Bank of India and Bank of Baroda have been selected for this pilot project.
What is RBI's master plan:-
India's central bank said that the aim of CBDC is to provide people with a risk-free virtual currency that will allow them to benefit from private virtual currency (cryptocurrency) transactions without taking risks. There are two approaches behind issuing CBDC – one is to create a digital rupee that is similar to paper currency and the other is to manage the process of issuing digital rupees in a seamless manner.
Types of e-rupee:-
According to this concept note, CBDCs can be divided into two broad categories – general purpose (retail) (CBDC-R) and wholesale (CBDC-W) based on the use and function of digital rupees. Retail CBDC is primarily an electronic version of cash for retail transactions. It will likely be available to everyone – private sector, non-financial consumers and businesses. Whereas, wholesale CBDC is designed to provide limited access to select financial institutions.
Advantages of digital currency:-
After the launch of digital currency, there will be no need to keep cash. It will work like a mobile wallet. It will also earn interest. Digital currency can be kept in a mobile wallet or account. The use of paper currency will also decrease in a country where digital currency is implemented. CBDC can be used even without internet.
Token-based and account-based design:-
The central bank says that e-rupee or CBDC can be designed as token-based or account-based. In a token-based CBDC, the person receiving the token will verify that the ownership of the token is genuine. On the other hand, an account-based system will need to keep records of the outstanding dues and transactions of all holders of CBDC.
According to the Reserve Bank, there are two models for issuing and managing CBDCs – direct model (single-level model) and indirect model (two-level model). In the direct model, the central bank will be responsible for managing all aspects of the digital rupee system. Whereas, the indirect model will be a model in which the central bank and other intermediaries will each have to play their respective roles.
