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Digital rupee to be issued by RBI using blockchain and other technologies, says FM Nirmala Sitharaman
The digital rupee will be a digital depiction of an Indian rupee supported by the Reserve Bank of India (RBI).
Highlights
- The digital rupee will be a digital depiction of an Indian rupee supported by the Reserve Bank of India (RBI).
- India isn't the only country attempting to implement a digital legal tender system.
New Delhi: Digital rupee will be issued using blockchain and other technologies by RBI starting 2022-23. This will give a big boost to the economy, says FM Nirmala Sitharaman while presenting the Budget 2022.
The digital rupee will be a digital depiction of an Indian rupee supported by the Reserve Bank of India (RBI).
India isn't the only country attempting to implement a digital legal tender system. Various central banks throughout the world are experimenting with projects such as the digital dollar, e-yuan, and digital euro.
Unlike Bitcoin, which is a cryptocurrency based on the blockchain technology that allows users to remain anonymous, the RBI will endorse the official digital currency. For all transactions, the digital rupee is equivalent to a physical rupee. The value of a digital rupee will be the same as the value of a physical rupee.
Bitcoin and other cryptocurrencies have no intrinsic value. They are volatile, and unexpected and rapid decreases in value due to external circumstances can offer significant dangers to investors.