UPI (UNIFIED PAYMENTS Interface) is the preferred method of transaction in present times, whether while paying a vegetable vendor or making a big transaction. The success of UPI shows the allure of digital means when it comes to money. Can CBDC (central bank digital currency) become the future of money?
Testing the waters and taking one step at a time, the Reserve Bank of India (RBI) on November 1 launched India's first digital rupee pilot project for wholesale. The same for the retail segment will be launched soon.
To understand what a digital rupee is, it is crucial to know the central bank digital currency or CBDC. Inspired by cryptocurrencies and stablecoins, CBDCs are digital currencies issued by a country's central bank. It makes the digital rupee the digital currency of India. It is exactly like a banknote but in a virtual form.
In the words of the Reserve Bank of India (RBI), "CBDC is the legal tender issued by a central bank in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different."
These digital currencies can be transacted by using wallets, which are backed by Blockchain, the same technology considered critical to the cryptocurrency landscape. Not just that, these digital currencies backed by the country's central bank can be exchanged for physical currency.
This story is from the November 20, 2022 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 20, 2022 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
A Pivotal Retreat on Crypto
The US Securities and Exchange Commission (SEC) has recently dramatically shifted its approach toward cryptocurrency regulation by dropping high-profile lawsuits against major exchanges like Kraken and Coinbase.
Shareholder capitalism is back
THE VIRTUE ECONOMY, the only bubble I have ever called, has now completely burst. Many companies are cutting their DEI programmes, flows into ESG funds in the US have fallen, and companies are being quieter about politics.
Godrej Consumer opens ₹515-cr Chennai unit
GODREJ CONSUMER PRODUCTS (GCPL) on Monday inaugurated its first integrated greenfield manufacturing plant in Chengalpattu district on the outskirts of Chennai, with an investment of ₹515 crore.
Record 115 MT wheat output seen
WHEAT PRODUCTION IS projected at a record 115.3 million tonne (MT) during the 2024-25 crop year (July-June) — an increase of 2% over the previous year, the second advance estimates of major crops released by the agriculture ministry on Monday showed.
Govt's FY25 spending to exceed revised estimate
THE CENTRE ON Monday sought Parliament's approval for net additional spending of ₹51,463 crore in the second batch of supplementary demand for grants for FY25, which could lead to government expenditure exceeding the revised estimate (RE) of ₹47.16 lakh crore, sources said.
2W dealers anxious as new norms from Apr 1; no clarity on old stock
The next stage of regulatory compliance for two- and three-wheelers is set to kick-start on April 1, 2025.
Maha budget: ₹36K cr to Ladki Bahin; 3rd airport for Mumbai metro region
THE MAHARASHTRA GOVERNMENT on Monday allocated ₹36,000 crore for the Ladki Bahin scheme but did not announce a hike in the allowance, proposed to increase Motor Vehicle Tax by 1% on CNG and LPG vehicles, as it presented a ₹7,00,020 crore budget for the fiscal 2025-26.
Optimistic growth outlook for L&T
Real estate, defence, thermal power are key growth drivers
Sun Pharma to Acquire Checkpoint for $355 Million
SUN PHARMACEUTICAL INDUSTRIES said on Monday it will acquire Checkpoint Therapeutics, a US-based immunotherapy and targeted oncology company, for $355 million.
Prices of veg, non-veg thali down 5% in February: Crisil
THE COST OF vegetarian and non-vegetarian thali declined by 5% on-month in February due to lower vegetable and broiler prices, a report by Crisil Market Intelligence and Analysis said on Monday.
