Future of Digital Currency in India

Future of Digital Currency in India

The discussion around the future of digital currency has been raging around the world where several economic experts have argued that the global economy will eventually move towards digital currency; but at the same time, we also witnessed the crash of Crypto currency and Bitcoin, which brought severe financial losses to all the holders. But what is digital currency? Digital currency is basically the kind of currency which is only present in electronic form and can be traded and used only in the digital space.  

The Reserve Bank of India has kept foreign digital currencies at bay, which has left people wondering whether it is too early to put faith in digital currency. However, RBI is now gearing up to launch its Central Bank Digital Currency (CBDC) or otherwise referred to as Digital Rupee. The Indian banking and financial establishment is thus serious when it comes to digital currency but decided to keep Crypto and Bitcoin away from India’s market to shield its economy from bearing potential losses among many other factors; which is precisely what happened in recent past.  

Digital Rupee promises to make global transactions more convenient on a mass scale. According to Forbes, it will be a much faster mode of payments than the currently available options, will conduct cheaper global transfers with no manufacturing cost, will have well-organised government payments with 24/7 availability. It will thus be a great asset towards laying the foundations of a digital economy in India, and by extension the entire world.  

At the same time, it has its own drawbacks such as cybersecurity issues and a difficult learning curve for the users; and countering them will require a lot of planning. But from an optimistic point of view, Digital Rupee has the same potential to revolutionise Digital India and its economy as United Payments Interface or UPI. While the best minds of RBI would be working round the clock to bring Digital Rupee to life, the kind of large-scale growth India is aiming for will only be possible by eventually inviting private players to participate. 

All in all, one can surely expect a healthy future of digital currency in India! 

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