Reserve Bank Of India Will Launch Digital Currency – RBI Will Launch Its Own Digital Currency, These Will Be Benefits
For the implementation of the Central Bank Digital Currency (CBDC), the Reserve Bank is in the process of introducing it soon in the wholesale and retail sectors on a pilot basis.
New Delhi. Giving important information, Reserve Bank of India (RBI) Deputy Governor T. Ravi Shankar has said that the Reserve Bank is working on a plan to launch its own digital currency. The new currency will be called the Central Bank Digital Currency (CBDC). This plan will be implemented in several steps. For the launch of the Central Bank digital currency, the Reserve Bank is in the process of introducing it soon in the wholesale and retail sectors on a pilot basis. However, for this, before launching the digital currency, the government will have to make necessary changes in the foreign exchange law of the country as well as in the IT rules.
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CBDC will have these benefits
The risks of a central bank digital currency are minimal but it will have many benefits. For example, this currency will help protect people from the volatility in the price of private digital currency (or cryptocurrencies). This will reduce people’s dependence on cash and also reduce the risk of settlement.
In fact CBDC will be a legal tender issued by the Central Bank. Its form will be different from fiat currency (which is currently in circulation) but both can be interchanged. However, in such a situation some opposite things may also have to be faced. For example, a sudden withdrawal of money from the bank. In such a situation, there may be a shortage of cash in front of the banks.
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There will also be changes in the law before the launch of CBDC
A CBDC cannot be launched as per the existing laws. Therefore, Parliament will be required to amend the Coinage Act, the Foreign Exchange Management Act and the Information Technology Act before launching a central bank digital currency. Only then can this currency be used.
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