Deloitte, a multinational professional service network, released a report on Wednesday. In this report, Deloitte said that the central bank digital currency proposed by the Reserve Bank of India will play an important role in improving the speed of transactions and reducing the cash cost.
The Reserve Bank of India is planning to introduce a central bank-backed digital currency in the financial year 2022-23 using blockchain technology. The report noted that digital currency as an innovation in financial services could play an important role in shaping future money transfers. On the other hand, most central banks around the world are now in various stages of evaluation to introduce their national digital currencies.
economies will improve
Manish Shah, Member, Multinational Professional Services Network Deloitte India said that digital currency i.e. CBDC (Central Bank Digital Currency) has the potential to transform the way transactions make it more flexible, innovative and competitive payments for households, businesses and economies. system can be formed. This may further improve the economy.
Manish Shah said that with the introduction of Digital Rupee, there will be a significant increase in the efficiency of transactions and also the associated costs will come down. The report said that CBDCs can enhance the efficiency and effectiveness of payment systems by ensuring their users have access to secure digital currencies.
What is CBDC?
Reserve Bank of India (RBI) will launch CBDC in the upcoming financial year. A CBDC is a legal tender issued by a central bank in a digital form. It is similar to a fiat currency issued in paper and is interchangeable with any other fiat currency. Finance Minister Nirmala Sitharaman made a big announcement regarding digital currency in the budget speech for the financial year 2022-23.
According to the Finance Minister, Digital Rupee will be issued by the Reserve Bank of India (RBI). Digital Rupee will be BlockChain Technology based digital currency including Blockchain. By the way, the concept of digital currency is not new. Many digital or virtual currencies, including bitcoin, are being traded. But the digital currency will be the first virtual currency, which will be issued by the RBI and will be regulated by the Central Bank Digital Currency (CBDC).