Digital Currency: Union Finance Minister Nirmala Sitharaman made numerous major announcements when she presented the budget for the fiscal year 2022-23 on February 1. He added the Reserve Bank of India will launch digital currency, which is another step towards Digital India. The Reserve Bank of India will issue the digital rupee, according to the Finance Minister. By the way, digital currency is not a new notion. Other digital or virtual currencies, such as bitcoin, are already traded around the world. However, following the Finance Minister’s declaration, there has been a lot of talk regarding the digital rupee. Everyone wants to know what the Digital Rupee is, how it works, and what its benefits and drawbacks are. In fact, the digital rupee will function similarly to bitcoin or other virtual currencies. RBI will be the only one to issue it. Let us look at some of the benefits and drawbacks of the digital rupee in simple terms…
Positive aspects of the digital rupee or currency
RBI would have given the Digital Rupee legal status.
It will be in the form of a digital Rupee.
Any currency can be traded for it.
With the introduction of the Digital Rupee, Indian retailers may now easily make payments in Digital Dollars or Digital Ponds to merchants in the United States and Europe.
This will be a real-time transaction that will not require the use of a middleman.
The negative aspects of the digital rupee
Technology is the most significant challenge that the digital rupee or currency faces. Fraud and scam instances may rise as a result of technological advancements.
For the use of digital currency, a fast internet connection is required throughout the country.
The success of digital currency cannot be predicted until high-speed internet infrastructure is in place.
What is the difference between crypto and digital currency?
India’s digital currency will function similarly to money in that it can be used everywhere. Furthermore, digital currency can be swapped. In crypto currency, however, this is not the case.
Aside from that, you’ll be able to utilise Digital Rupee in any location. Digital rupees will be accepted everywhere, just like debit cards, credit cards, and online payments are. However, if you take a crypto to the grocery store to buy wheat or rice, you will most likely return empty-handed and unhappy.