What is E-Rupee 2024? | Digital rupee using block chain and other technologies to be issued by the Reserve Bank of India starting 2022 and 23.Our Finance Minister announced in his recent budget speech that our Central Bank and RBI will launch our first digital currency in 2022-2023.
BACKGROUND | What is E-Rupee 2024?
What is E-Rupee 2024? | As announced, on 1st November, RBI introduced our digital currency rupee as a pilot project, right from its announcement in the budget speech, but this digital rupee raised the curiosity of everyone.
But if we compare this digital currency launched by our RBI with crypto currency, how is it different and what is the real advantage of this digital rupee?And how can a common person use this digital currency?Is it actually a workout?What is its future potential if incased?
What is E-Rupee 2024? | Many questions have been raised since February 1st. Let us try to find out the answers to all these questions in this article.Before that, let’s know from scratch what this CBDC is that will be launched.al rupee is the digital form of physical notes that CBDC central bank digital currency is.
That is to say, the virtual form of the one hundred and two hundred rupee notes that we have.Our Central Bank is the same as the Reserve Bank of India, our legal tender i.e. whatever cash we see physically, it prints the same and also issues this rupee in a digital form.
What is E-Rupee 2024? | And whatever this digital rupee is with the currency notes issued by our government, it can also be exchanged one on one.So simply speaking, it is a digital form of legal currency.Where can this digital rupee be used?
Where can this digital rupee be used 2024? | What is E-Rupee 2024?
Presently RBI has launched this digital rupee as a pilot project so it has been launched to be used for any large transactions.As part of the present RBI pilot project, government securities issued by RBI will be used for sale and purchase.But in the coming days it can also be launched for retail transaction i.e. to use whatever their transactions are today.Our government introduces this CBDC central bank digital currency to us in two types one is CBDC wholesale and another is CBDC retail.
As we have talked about CBDC Wholesale earlier, it has been launched especially for the use of large financial institutions such as Banks ABFCs and very large transactions.Let’s talk about the second CBDC retail, which is going to be launched for the common people to do whatever transactions we do on a daily basis.But as seen currently, CBDC was launched as a wholesale pilot project. But it is said that CBDC retail is also going to be launched as a pilot project in some states soon.And based on the experience of the people after the launch, RBI is going to bring some changes and launch it again as a full-fledged one.
How this Digital Rupee Works 2024 | What is E-Rupee 2024?
Now let us understand how this digital rupee actually works. Whatever is the CBDC wholesale segment that is currently introduced, the government has made 9 banks as participants in this wholesale segment.
What is E-Rupee 2024? | Those banks are State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahendra Bank, S Bank, IDFC First Bank and HSBC.So these banks use all the CBDC wholesale for secondary market transactions in government securities settlements i.e. for buying hand sale of government bonds. So, RBI has selected nine banks as part of the present palette project and the rest of the banks have also been invited in the future.
What is E-Rupee 2024? | Also, additional features are also added in cross-border payments. And this CBDC is based on block chain technology and CBDCR i.e. CBDC retail is also implemented so common people can check our wallet balance just as we check our present bank balance.And this digital rupee can be exchanged one-on-one and can also be transferred.
What is E-Rupee 2024? | Why did our Government of India launch this digital currency early even though Next Point is becoming our existence currency system. Let us now know the advantages of this.
Benefits | What is E-Rupee 2024?
- Business transactions can be done fast and easy.
- Any fake currency can be curbed.
- Whatever the Government of India spends to print our notes, the printing cost can be reduced.
- Tampering with CBDC is not only difficult but impossible Also
- This CBDC will boost our digital economy. It will enhance the Indian economy as a world class digital payments system and also the interbank market will become more efficient and money transfer from our smart phones can be done quickly without any hassles.
What is E-Rupee 2024? | So because of these advantages, our Government of India has introduced this digital currency so early.Many people may have a doubt that crypto currency also works in a similar way, what is the difference between real crypto currency and CBDC, now I will explain to you.Our CBDC and crypto currency both run on block chain technology due to which there is confusion among all that these two are one and the same.But whatever the crypto and other private virtual currencies are, they are all stored in the decentralized network, unlike CBDC, it’s not decentralized. Also, the purpose they serve is entirely different. Let’s do this.
Let’s talk about crypto currencies first.Cryptos means any type of digital currency and all these crypto transactions are encrypted.And also these cryptos follow decentralized block chain technology. So because of this, the person who sells the crypto to the person who buys it retail sells vice versa.
What is E-Rupee 2024? | So the transactions are all unanimous. Only with the wallet address, all these transactions are authenticated and recorded.So these crypto transactions have no third party involvement and no control by government authorities.
Now And It Comes CBDC The first thing we all need to remember is that this is not crypto because whatever cash we have in our hands is a digital CBDC.Although this CBDC follows block chain technology, it runs on a centralized system.That means here every transaction is clear cut in details. Unlike crypto currency, the concept of unanimous does not exist here, whether digital rupees are transferred or received, their details are visible and recorded.What is E-Rupee 2024? | And the details of these transactions are visible to both the sender receiver and the bank involved in the transaction.
What is E-Rupee 2024? | And next important point who can not regulate the crypto currency, different is our CBDC, whatever this rupee is, this rupee is regulated by the central bank i.e. our RBI.So, as RBI regulated nodes of cash are released to us through different banks, this rupee is also released to us through several banks.Now I hope this explanation has helped you understand the difference between cryptos and CBDC.
Now the confusion related to the differences between cryptos and digital rupees is clear, but later another confusion can be created among many people.Presently we are doing all the transactions through digital route and now I will give you a clarification that what is the difference between UPI and this CBDC.C. What are the digital transaction methods we use now, do we do transactions like UPI, NEFT, ARTGUS, IMPS, debit or credit card.Every transaction we do should be in that bank if it is a currency. That means if we want to do transaction we should have physical currency in our bank account.
If we want to transfer that physical currency from this bank to another bank after doing the transaction, it will be transferred to that bank or if it is a different account in the same bank, it will be transferred to that account, but if it is near the bank, then definitely the amount in our account is enough physical currency, so we have to maintain it.
What is E-Rupee 2024? | When it comes to various CBDCs, there is no need to maintain physical currencies that remain in a completely digital form.So far in this video we have learned about the advantages that come to us from this CBDC launched by our Government of India. There are no risks in this, i.e. how can it be without risks and there are also risks.Let us also know about those risks, only when we know about the risks we can be a little careful.First most of you can already guess that entire transactions are digital so cyber security related risks are definitely there if that is a big risk.
Second, I see another risk, this risk is not replicable for everyone, for those who are elderly people, whatever this digital rupee is, it is a bit challenging part because they want to understand and do the transaction, it will be a challenge for them and also there is a possibility of frauds here.
Now finally what is the future potential of CBDC if you ask me simple CBDC introduced to enhance Indian digital economy can reduce dependency on physical cash, reduce settlement risk and substantially reduce transaction cost if any.happens, and efficiency increases, and transactions also become very quick and in a trusted and regulatory method.Due to this, our Government of India is also very profitable.So we have to think that the success rate of CBDC is very high due to all these advantages.
What is E-Rupee 2024? | So, if these changes are required for the CBDC tested by these pilots and done correctly, this could be the next big thing in our country.So finally this CBDC considered as the future of money, we all have to wait and see whether this rupee will become a success or a wrong step.And also among your friends and family members, many people do not know the related details of this digital currency launched by our Government of India, what is this rupee.
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