Swarajya Logo
Swarajya Logo
Politics States Economy Society Business Culture Infra Defence World Books Ideas Science Technology Heritage Archives Legal Movies Sports
  • Our Views
    Politics States Economy Society Business Culture Infra Defence World Books Ideas Science Technology Heritage Archives Legal Movies Sports
  • Magazine
  • Store

About Swarajya

Swarajya is a publication by Kovai Media Private Limited.

Swarajya - a big tent for liberal right of centre discourse that reaches out, engages and caters to the new India.

editor@swarajyamag.com

Useful Links

  • About Us
  • Subscriptions Support
  • Editorial Philosophy
  • Press Kit
  • Privacy Policy
  • Terms of Use
  • Code of Conduct
  • Plagiarism Policy
  • Refund & Cancellation Policy

Useful Links

  • About Us
  • Subscriptions Support
  • Editorial Philosophy
  • Press Kit
  • Privacy Policy
  • Terms of Use
  • Code of Conduct
  • Plagiarism Policy
  • Refund & Cancellation Policy

Participate

  • Contact Us
  • Write for us
  • Style Guide
  • Jobs

Stay Connected

  • Artboard 2 Copy 6Created with Sketch.
    Artboard 2 Copy 10Created with Sketch.
    Artboard 2 Copy 7Created with Sketch.
    Artboard 2 Copy 9Created with Sketch.
  • Andriod Logo
  • IOS Logo

Economy

Digital Rupee: RBI All Set To Go Ahead With A Pilot Launch

Swarajya StaffFriday, October 7, 2022 5:56 pm IST
The Reserve Bank of India.
The Reserve Bank of India.
The Reserve Bank of India.
  • Following the announcement in the Union budget by Finance Minister Nirmala Sitharaman, the digital rupee is all set for a pilot launch by RBI.
  • India’s Central Bank Digital Currency (CBDC), the digital rupee, is coming soon.

    As announced in the Union Budget earlier this year by Finance Minister Nirmala Sitharaman, the digital rupee is all set for a pilot launch by the Reserve Bank of India (RBI).

    The central bank has also released a concept note on the CBDC as it aims to create awareness about what would be accomplished with the digital rupee.

    As per the RBI, the digital rupee will be a complement to the existing forms of money, and while it won’t be different from banknotes, it would usher in the ease of transaction by being cheaper and faster.

    The concept paper, meanwhile, focuses on technology, design choices, potential use cases, issuance mechanisms, monetary policy, and individual privacy.

    CBDC, quite like banknotes but digital, will be a legal tender issued by the central bank and could be exchanged for existing currency forms. 

    CBDCs are different from cryptocurrencies, for they have the backing of the central bank, and have a stable value (equivalent to the national currency). 

    The settlement and liquidity aspects are taken care of, unlike the crypto exchanges.

    RBI’s Deputy Governor T Rabi Sankar in an interview recently stated that the digital rupee will leave no room for private cryptocurrencies to exist.

    Given the CBDC would allow governments to track financial transactions better than today, the existence of an unregulated crypto market would contradict the existence of the former altogether. 

    The digital currency rollout across China, the United States, and other big markets across the world including India, the United Kingdom, and Japan, would directly threaten the existence of the cryptocurrency market, already hammered by the recent meltdown. 

    A discussion paper by the Bank of England, from March 2020, offers insights into the possibilities associated with the central banks going digital and what India could achieve. 

    This would include supporting a resilient payments landscape, meeting future payment needs in a digital economy, improving the availability and usability of central bank money, addressing the consequences of a decline in cash, and most importantly, as a building block for better cross-border payments. 

    The rise of digital currency, backed by the central bank, could give rise to ‘programmable money’ with monetary policy catering to certain businesses or sectors.

    This would allow for enabling transactions for only certain events, under specified rules, or for specific regions.

    However, in the long term, RBI would be looking at a phased approach to launch the digital rupee, covering several use cases at a time. 

    Tags
    Japan
    us
    UK
    Nirmala Sitharaman
    Central Bank Digital Currency
    Cryptocurrencies
    Digital Rupee
    Banknotes
    T Rabi Sankar

    Comments ↓

    An Appeal...


     

    Dear Reader,

     

    As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

     

    Our business model is you and your subscription.  And in challenging times like these, we need your support now more than ever.

     

    We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

     

    Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

    Get Swarajya in your inbox.


    Magazine


    Swarajya Magazine Cover Image
    Merchandise

    Merchandise


      Politics

      Counting Day: Keep Your Eye On These 10 Seats In Madhya Pradesh

      Counting Day: Keep Your Eye On These 10 Seats In Madhya Pradesh

      Tushar Gupta
      4h

      The Sacrifices That Sealed A Commitment — 'Mandir Vahin Banayenge'

      Aravindan Neelakandan
      9h

      Delhi Liquor Policy Case: Enforcement Directorate Files Charge Sheet Against AAP MP Sanjay Singh

      Swarajya Staff
      9h

      Economy

      Textile Industry In Tamil Nadu Affected By Increased Competitiveness Of Other States; High Cost Of Power And Labour Among Reasons: Report

      Textile Industry In Tamil Nadu Affected By Increased Competitiveness Of Other States; High Cost Of Power And Labour Among Reasons: Report

      Swarajya Staff
      10h

      Sorry, Cassandras. India's GDP Could Well Top 7 Per Cent In Fiscal 2023-24

      R Jagannathan
      2d

      India's GDP Grows 7.6 Per Cent In July-September Quarter

      Nayan Dwivedi
      2d

      Defence

      India To Secure Entire Pakistan And Bangladesh Borders In Next Two Years: Home Minister Amit Shah On BSF Day

      India To Secure Entire Pakistan And Bangladesh Borders In Next Two Years: Home Minister Amit Shah On BSF Day

      Nayan Dwivedi
      1d

      Indian Navy Makes History By Appointing First Female 'Commanding Officer' Of A Naval Ship

      Swarajya Staff
      1d

      Centre Putting All-Out Efforts To Bring Them Back: Indian Navy Chief On Veterans Sentenced To Death In Qatar

      Swarajya Staff
      1d

      World

      Hamas Leader, Who Virtually Addressed A Pro-Palestine Rally In Kerala In October, On Israeli Spy Agency's 'Kill List': Report

      Hamas Leader, Who Virtually Addressed A Pro-Palestine Rally In Kerala In October, On Israeli Spy Agency's 'Kill List': Report

      Swarajya Staff
      10h

      New Zealand: Three Khalistani Extremists Sentenced For Attempted Murder Of Radio Host Harnek Singh

      Swarajya Staff
      12h

      Brazilian City Council Unknowingly Enacts First AI-Written Ordinance

      Swarajya Staff
      13h

      Culture

      'Animal': Sandeep Reddy Vanga 2 – Liberals 0

      'Animal': Sandeep Reddy Vanga 2 – Liberals 0

      K Balakumar
      7h

      Why The Insidious Anti-Hindu Communalism Of Certain Directors Goes Scot-Free

      Anonymous Contributor
      12h

      Napoleon Film Review: Ridley Scott’s Waterloo

      Venu Gopal Narayanan
      13h
      States

      infrastructure


      Arun Kumar Das
      1

      Government Propels National Green Hydrogen Mission With Kochi Workshop

      2 Mins Read
      Arun Kumar Das
      2

      Railways Achieves 1015.6 Million Tonnes Freight Loading Between April-November 2023

      1 Mins Read
      V Bhagya Subhashini
      3

      Bengaluru Airport: BIAL Reveals Comprehensive Master Plan For T1 Upgrade And T3 Construction By 2030

      2 Mins Read
      Amit Mishra
      4

      Noida Proposes To Build 35 Km Elevated Road Along The Yamuna To Ease Travel To Greater Noida

      2 Mins Read