RBI digital currency: Keeping in mind the prevalence of cryptocurrency, now the Reserve Bank of India is also considering bringing digital currency. Chinese Central Bank has already launched Digital Yuan.
RBI digital currency: The cryptocurrency market has grown very fast in the last few years. The way the price of Bitcoin, the most popular cryptocurrency, is going up, is attracting investors. Here the Reserve Bank of India said that it is considering bringing digital currency itself. In the booklet issued by RBI on January 25, regarding the payment system, it is clearly written that the Reserve Bank is considering whether a digital version of the rupee should be brought?
It is not that the Reserve Bank has said something about digital currency for the first time. Even before this, many times the high officials of the bank have given open statements about this, but so far there is no visible progress in this direction. If you talk about bitcoin, then its rate is running close to 25 lakh rupees. Actually there is no regulation about it nor any central bank issues it, so experts are against it. However, it can not be denied that its acceptance is increasing gradually.
Tension due to increasing interest of investors
In the last few years, the circulation of digital currency has increased rapidly. In simple words, Bitcoin, which is like a private currency, has increased the interest of investors. Due to the increasing interest of investors, central banks around the world are moving fast towards CBDC (central bank digital currency). Central banks believe that if the government does not bring regulated cryptocurrency in time, it is possible that the private player’s dominance on the digital currency market will increase. This situation will not be correct because all the cryptocurrencies are not regulated and no central agency controls it.
Trial is being done by Central Bank of China
If you talk about the Reserve Bank of India, then it is far behind in this matter. The Chinese Central Bank has been making serious efforts in this direction for many years. The Central Bank of China, People’s Bank of China has approved the trial of Digital Yuan. Currently, the People’s Bank of China has approved Digital Yuan or Digital Currency Electronic payment (DCEP) has been approved for trial in Shanghai.
What is Project Digital Yuan?
Digital currency is a very ambitious project of China. The boom in the cryptocurrency market, especially after the historic boom in bitcoin, is a major decision taken by the government. At present, not much information has been revealed about Digital Yuan, but PBoC is serious about it. If the trial results are positive, then China will become the first country in the world to implement digital national currency. Four big banks – Bank of China, China Construction Bank, Industrial and Commercial Bank of China and Agricultural Bank of China – are working together on this project. Chinese e-commerce JD.com is the first company to start taking payments in digital currency.
What is the difference between digital and cryptocurrency?
Right now, two types of words have come to you First cryptocurrency and second digital currency or CBDC or central bank digital currency. There is a lot of difference between the two. If the Reserve Bank issues digital currency, then there will be a digital version of Rs. Meaning 100 rupee note will also be in digital form. It will be regulated and RBI will be watching it. When talking about cryptocurrency, it is a virtual currency operating on the Internet. Apart from Bitcoin, there are hundreds of other crypto currencies in the world such as Red Coin, Sia Coin, CiscoCoin, Voice Coin and Monroe.
