Digital Currency: The Indian government is bringing digital currency. In the 2022 budget, Indian Finance Minister Nirmala Sitharaman has announced this. He also said that this digital currency will be introduced through the use of blockchain. He also mentioned that the digital currency will be launched in the fiscal year 2022-23. He also mentioned the benefits of launching this currency.
• What is Digital Currency?
Now naturally the question arises What is Digital Currency? Digital Currency is a Digital Currency launched by RBI. This currency will be called Central Bank Digital Currency (CBDC). This currency is the currency issued by the RBI-approved central bank. However, this coin will not be by any paper or any other object, this coin will be Digital. This can be called legal tender.
• In the context of Digital Currency, let us know what is Digital resources?
Simply put, any resource in digital form is a digital resource. It could be a card, it could be a digital picture. Which can be transacted through blockchain technology. In this case, there is a code and this one code will have only one resource.
What are the benefits of Digital Currency? What are the advantages of digital currency?
He said that the Central Bank Digital Currency (CBDC) would help bring significant momentum to the digital economy.
He also said that digital currency will make the currency management system much more efficient.
৹ There are several other benefits to using this digital currency. For example- ▪︎ Since this Digital Currency will be used through blockchain technology, all the transaction information remains in the blockchain. As a result, blockchain technology will help you to know all the transaction information.
▪︎ Another advantage of using Digital Currency is that if it is changed, it can be found out with the help of blockchain technology.
▪︎ Digital Currency’s blockchain technology is kept through a code. And this code can only contain one resource. No replicas can be made.
৹ Digital currency is basically frugal. As a result, there will be no loss of currency. On the other hand, paper money is easily wasted or can be wasted. So once this coin is introduced, it will not be lost.
• How to use Digital Currency?
This Digital Currency is basically of two types.
1) Retail- This retail digital currency will be used by common people and various companies.
Currency is used by financial institutions
2) Wholesale – Wholesale currency will be used in financial institutions.
The key to digital currency is blockchain technology. And this blockchain technology method is to have all kinds of information in all the computers in a network. But everything will be regulated by RBI. It will not actually be decentralized.
This Digital Currency can be easily sent to each other from mobile. This currency can be used to buy all kinds of products as well as for all kinds of services.