What is 'Digital Rupee’ and how much will people benefit from it? Will there be interest on e-rupee?

The Reserve Bank of India (RBI) may start pilot testing of digital currency ‘Digital Rupee’

for retail customers of the central bank within a month. RBI has given this information in a

statement.

The Reserve Bank of India (RBI) may start pilot testing of digital currency ‘Digital

Rupee' for retail customers of the central bank within a month.

RBI has given this information in a statement.

Let's know what is digital rupee and what will be the benefit to the customers...

What is its benefit

Acentral bank's digital currency is a digital form of a country's main currency.

Itis issued and regulated by the central bank

CBDC increases payment efficiency with financial inclusion

Stops criminal activity, improves international payment options

potentially net transactions

reduces cost

World Bank estimates that at present the fee for sending money to other

countries in this way is more than 7, whereas with the introduction of digital

currency, this item will be reduced by 2.

According to currency experts, e-rupee will be token based.

This means that you can send money to the person to whom you want to send

money using his public key.

This can be like an email id.You will need to enter a password to send money.

E-Rupee will work even without internet.

However, detailed information is yet to come on this.

According to the draft proposal of RBI, no interest will be given on e-rupee.

Explaining the reason for this, the central bank has said that if this step is taken

i.e. interest is given on it, then a large number of people can withdraw money

from banks and convert it into e-rupee.

This can lead to instability in the currency market.

India will be the first country to issue digital currency on behalf of the central

bank.

Prior to this, countries like Dubai (UAE), Russia, Sweden, Japan, Estonia and

Venezuela have launched their own cryptocurrency.