What is Digital Currency? Most Important Things about Digital Currency 2022
India today is no less than any other country in the digital sector. 2015 was the year when India launched the Digital India campaign for the first time. India, which adopts digital platforms then and now, has seen a very good change. In the journey from 2015 to 2022, India has made a distinct identity in the digital platform. From shopping and billing to doing business, India has become digital. In the last few years, India has made a lot of progress digitally. Many such schemes have gone digital such as BHIM UPI, DIGI LOCKER, COWIN, Aadhaar, GEMS etc. All these digital platforms have made the work of the citizens of India much easier. Now India is also trying to bring about a big change in the field of banking. This change is what the Government of India wants to make in association with the Reserve Bank of India by bringing in digital currency. So what is a digital currency and how will it turn the money of the people of India into a digital platform?
What is Digital Currency?
When the cash of a country is stored in a digital system and used electronically, we call it a digital currency. You can understand it as an electronic form of your own money, such as your money, any acid used in an electronic token, or any other electronic platform. The digital currency will give the citizens of the country and the banking sector an opportunity to see everything electronic about money as if there will be no long queues in banks and their money will start in minutes on just electronic devices or they will be able to use their money anywhere in a few minutes.
Digital Currency and Reserve Bank of India (RBI)
The Reserve Bank of India met under the leadership of the Finance Minister of India in which the issue of digital currency was discussed. In the discussion, the Government of India talked about introducing digital currency from the Central Bank. The Finance Ministry suggested to the central bank to bring in digital currency so that people can use the money digitally. With Indians leaning heavily towards cryptocurrencies, the government has decided that the Reserve Bank of India should come up with a way by which the people of India can use their money digitally and earn digitally. A way that keeps people’s time, children and money safe, and at the same time, this country becomes smart about digital devices.
Digital Currency abroad
86% of the world’s central banks such as the UK bank, the Bank of China, and the Bank of the United States, want to change their traditional money, that is, to make them electronic/digital. What percentage of the country is discussing this subject a lot and is also doing a lot of research on it? Let us tell you that so far 14% of the central banks in the whole world have started pilot projects. The central banks of those countries have also started their work on digital currency.
Features and Benefits of Digital Currency
- The digital currency will be validated by the country’s government
- The digital currency will be included in the balance sheet of the country’s central bank
- The advent of digital currency will rid people of being dependent on cash and money. People often have trouble keeping and using cash. Sometimes they can’t even withdraw or deposit cash at the right time. Therefore, with the arrival of this currency, people will be able to get rid of cash being dependent on rupees.
- Digital currency is also being considered to be used for both retailer wholesales
- The amount of money that the government spends on printing the money will also be reduced.
- This will make the way of depositing and withdrawing money much easier because everything will be electronically and the money will also be electronic, so people will not have to have a long line for a long time and they will be able to easily store their money electronically.
- Digital currency salespeople will feel secure about their money and their money will be more secure
- The expenditure on the printing of government notes will be reduced
- With the arrival of digital currency, people will not have to wait for different times to transfer money outside their country or within the country itself or to deposit it, which will also reduce the activities like banking fraud.
Disadvantages of Digital Currency
We all know that with the coming of any new thing, as much as that thing benefits, it also brings with it some harm. In the same way, if the digital currency will prove to be a good change for the country, it will also bring with it some disadvantages, like it can be some disadvantages of the digital currency:
- The arrival of digital currency can cause a lot of losses to the employees in the banks as the arrival of this currency will reduce the manpower of the banks.
- It may happen that the turnover of so many banks will be reduced because everything will be electronically and money will also become electronic.
- This may reduce the feeling of security among people working in the banking sector about their jobs.
- The advent of digital currency may require many banks in the country to reduce their manpower
- The security of many people working in the banking sector may be questioned.
Types of Digital Currency
There can be three types of digital currency such as:
- Central Bank Digital Currency
- Virtual currency
Latest News related to Digital Currency
The Union Budget for 2022 was presented in Parliament on February 1, 2022. India’s Finance Minister Nirmala Sitharaman announced during the Budget that the digital currency will be introduced in the year 2022-2023. The Finance Minister also said that Indians who are investing in cryptocurrencies will have to pay a 30 per cent tax. The Government of India is preparing to launch the digital currency with the rbi i.e. reserve bank of India. During the Budget session, the Finance Minister made his point that the central bank’s digital currency will boost India’s economy. This will move India toward a cheaper and more efficient currency system.
How to use Digital Currency?
It is believed that the digital currency brought to India will be used in the same way as the cryptocurrency and bitcoin prevalent all over the world. The only difference in this will be that the digital currency will be the government currency. It will be the stamp of the government i.e. the law. Guidelines on how to use digital currency will be issued by the Reserve Bank of India. The digital currency will be introduced with the help of blockchain and other technology which will be released by the Reserve Bank of India.
In the times to come, digital currency is being seen as a boost to India’s economy. The year 2022-2023 is being reported as the arrival time of the digital currency. If the decision of the Government of India’s digital currency launch proves to be good, it could prove to be right for India’s digital sector and economy. With the use of new technology, it seems to make the people of India and the government aware of becoming smart citizens. This could prove to be leading India’s currency to a cheaper and more efficient currency system.
- I am Shivanga Kumar Gogoi, owner of the Multigyan.com website. I am a B.Tech degree holder and 21yrs old young entrepreneur from the City of Jorhat, Asam. By profession, I'm an instrumentation engineer, web designer, google webmaster and SEO optimizer. I have deep knowledge of Google AdSense and I am interested in Blogging.
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