Finance Minister Nirmala Sitaraman and RBI Governor Shaktikanta Das will co-chair (digital currency) the first Finance Ministers & Central Bank Governors (FMCBG) conference under the G20 Indian Presidency, which is slated to take place in Bengaluru.
During the opening act for this conference, which was place in Bangalore, RBI’s e-, or digital money, was demonstrated, according to information posted on their official twitter account.
They posted a snapshot showing several delegations and Reserve Bank governor Shaktikanta Das stopping by the Central Bank Digital Currency booth.
The Reserve Bank of India (RBI) issues the Central Bank Digital Currency (CBDC), known as the Digital Rupee, which is regarded as fiat money. The denominations of this digital rupee are the same as those of the present paper money and coins.
The Chief General Manager of RBI also noted in a press release from last year that Reserve Bank would shortly start trial launches of e- for certain use cases, and that RBI will continue to communicate about specific features and benefits of e- as these pilot launches develop in breadth and extent.
The RBI has also released a concept note on CBDC that explains the many benefits this digital currency has to offer, including the assurance of transparency, low operating costs, and the ability to expand the current payment systems to meet the demands of a larger category of users.
The idea behind this digital currency is largely inspired by crypto currencies; the major distinction is that CBDC would be regarded as legal cash, simple to transfer, and legally recognised. The implementation of the CBDC is intended to reduce risk in trade, business, and commerce as well as to manage the unlawful, evil, and money-laundering operations carried out by specific groups of individuals.
What is the full form of CBDC?
The RBI’s Central Bank Digital Currency (CBDC) pilot programme for the retail market includes elements built on the blockchain technology. On October 7, 2022, the Reserve Bank of India (RBI) released a concept note on Central Bank Digital Currency (CBDC).
Which coin is CBDC?
Money that may be issued by a nation’s central bank is known as central bank digital currency (CBDC). As it’s not actual money like notes and coins, it’s dubbed digital (or electronic). On a computer or other comparable device, it appears as a quantity.