The executive director of the Reserve Bank of India, Ajay Kumar Choudhary, said at an interactive session called “Digital Rupee: A Way Forward” that introducing digital currency would make the system much more efficient and help more people get access to financial services.
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Choudhary says that the digital rupee would be more stable because it would be tied to new ways of making payments. He also said that it would encourage new ideas in the field of international payments. In the future, the marketplaces will make more huge cases based on what they need. He also said that CBDC will give the public what they want while protecting consumers and avoiding negative social and economic effects.
Will it replace the way we pay now?
Choudhary thinks that digital money will meet the strategic need right now. He thinks that digital currency is more likely to work in addition to current payment systems than to replace them. It would give people a different way to pay for things.
He said that in order to make a system that is fair, competitive, and open to innovation and technological change, the Reserve Bank of India will take steps to make sure that the issuance of CBDC is done in a smart way with enough safety measures to deal with any problems or risks that might come up.
Choudhary said that the central bank digital currency (CBDC) tracker shows that nearly 105 nations, which account for 95% of global GDP, have taken steps to incorporate digital currency into their economies. About 50 nations are in an advanced stage of looking into the possibility of doing so, and 10 nations have already done so completely.
UPI and digital currency are not the same.
Choudhary pointed out that while UPI is a way to pay for things, digital money issued by the central bank is a liability for the RBI, just like physical money. He said that each UPI transaction is the responsibility of the bank that was used.
Source: Google Trend