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CBDC

aNt29

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RBI Launches Concept Note To Create Awareness About Central Bank Digital Currency: The Reserve Bank of India (RBI) launched a “Concept Note” regarding central bank digital currency (CBDC) for India. The “Concept Note” covers important topics such as technology and design options, potential applications for the digital rupee, and issuance procedures. The Union Minister of Finance stated in Budget 2022 that the RBI will issue a CBDC during this financial year and that they would use a graded strategy to introduce the digital rupee.

What is CBDC?

CBDC is defined by the Reserve Bank as a digital legal tender issued by a central bank. It is the same as a sovereign currency and can be exchanged at par (1:1) with fiat cash. While digital money is widely used in India, such as in bank accounts that are recorded as book entries on commercial bank ledgers, a CBDC would be different from other digital money that is accessible to the general public because it would be a liability of the Reserve Bank rather than a commercial bank. A distributed ledger technology (DLT) like Blockchain will be used to maintain its records and this will make all CBDC transactions traceable.

The RBI Act will be amended to include e₹ in the definition of the term ‘bank note,’ as well as a new section covering e₹ features and appropriate exclusions.

Features of CBDC

  • CBDC is a form of sovereign currency that central banks issue in accordance with their monetary policies.
  • On the balance sheet of the central bank, it is shown as a liability.
  • It is expected to reduce the expense of issuing money and conducting transactions.
  • It is easily convertible against cash & commercial bank money.
  • All individuals, businesses, and governmental organizations must recognize it as a valid form of payment, legal tender, and a safe store of value.
  • It is a fungible legal tender for which holders do not need a bank account.

Benefits of CBDC

  • It will help in promoting payment competitiveness, efficiency, and innovation.
  • Encourage financial inclusion
  • It will reduce the cost of managing physical cash
  • Improve cross-border transactions.
  • Protect the public’s faith in the national currency against the expansion of crypto assets.
  • It will promote the cause of digitalization in order to establish a cashless economy.
 

aaa2zzz

Ungalil Oruvan
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RBI Launches Concept Note To Create Awareness About Central Bank Digital Currency: The Reserve Bank of India (RBI) launched a “Concept Note” regarding central bank digital currency (CBDC) for India. The “Concept Note” covers important topics such as technology and design options, potential applications for the digital rupee, and issuance procedures. The Union Minister of Finance stated in Budget 2022 that the RBI will issue a CBDC during this financial year and that they would use a graded strategy to introduce the digital rupee.

What is CBDC?

CBDC is defined by the Reserve Bank as a digital legal tender issued by a central bank. It is the same as a sovereign currency and can be exchanged at par (1:1) with fiat cash. While digital money is widely used in India, such as in bank accounts that are recorded as book entries on commercial bank ledgers, a CBDC would be different from other digital money that is accessible to the general public because it would be a liability of the Reserve Bank rather than a commercial bank. A distributed ledger technology (DLT) like Blockchain will be used to maintain its records and this will make all CBDC transactions traceable.

The RBI Act will be amended to include e₹ in the definition of the term ‘bank note,’ as well as a new section covering e₹ features and appropriate exclusions.


Features of CBDC

  • CBDC is a form of sovereign currency that central banks issue in accordance with their monetary policies.
  • On the balance sheet of the central bank, it is shown as a liability.
  • It is expected to reduce the expense of issuing money and conducting transactions.
  • It is easily convertible against cash & commercial bank money.
  • All individuals, businesses, and governmental organizations must recognize it as a valid form of payment, legal tender, and a safe store of value.
  • It is a fungible legal tender for which holders do not need a bank account.

Benefits of CBDC

  • It will help in promoting payment competitiveness, efficiency, and innovation.
  • Encourage financial inclusion
  • It will reduce the cost of managing physical cash
  • Improve cross-border transactions.
  • Protect the public’s faith in the national currency against the expansion of crypto assets.
  • It will promote the cause of digitalization in order to establish a cashless economy.
Idha use pani Black to white convert paniruvanga aproam yaru blacksheep nu kandu pidika mudiyadhu.White money anadhum nallavan mathiri politicians veliya pesi nadipanga, adhukulla India engayo keela poirukum. Indha ruling government enna paninalum doubt ah thaaa parka vendi iruku. Already demonetization la adi vangi irukkom, inum idhuku mela enga poietu mudiyumo idhu ellam. Poor and middle class people only suffer so much.
 

Vanathi

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Enakku idhula oru doubt irukku. I dont understand this concept.
If i am buying something for say 67 rupees in a shop. I need to give 100 rupees in digital currency and get back 33 rupees (i.e. one 20 rupee note, one 10 rupee note, one two rupee coin and a one rupee coin) from the vendor??

Isnt it easier to just gpay 67 rupees to him and be done with it. Rendukkum enna difference and how is this helpful?? can someone throw some light on this please.
 

ilakiyaa

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Vanathi

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Thanks da. That was really helpful :love:

Irundhaalum idhukku paruthi moottai godownlaye irukkalaame effect thaan enakku 😂
 

aaa2zzz

Ungalil Oruvan
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Enakku idhula oru doubt irukku. I dont understand this concept.
If i am buying something for say 67 rupees in a shop. I need to give 100 rupees in digital currency and get back 33 rupees (i.e. one 20 rupee note, one 10 rupee note, one two rupee coin and a one rupee coin) from the vendor??

Isnt it easier to just gpay 67 rupees to him and be done with it. Rendukkum enna difference and how is this helpful?? can someone throw some light on this please.
Our digital currency is secured, i mean you can show this as collateral for getting any other loans later. And with other crypto currency no backup like this, then these crypto curreny will have all the tracking, like from where the money is originated and how it is transferred like that, then another thing is for these money we don't need to have a bank account. So when we implement in India, anyone can receive money from abroad without a bank account, mostly our aadhar will be used for this.
 

Vanathi

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Our digital currency is secured, i mean you can show this as collateral for getting any other loans later. And with other crypto currency no backup like this, then these crypto curreny will have all the tracking, like from where the money is originated and how it is transferred like that, then another thing is for these money we don't need to have a bank account. So when we implement in India, anyone can receive money from abroad without a bank account, mostly our aadhar will be used for this.
Thanks for the info. I was wondering abt the difference between UPI and CBDC. Crypto is altogether a different domain. No controlling authority for that. Thats totally a different and complicated subject.

CBDC is just a digital alternative for cash i assume, which is regulated by RBI. Cash kaila irukkum podhu how will i show it as collateral for loan? It doesnt make much sense. Its not like a FD, PF, savings or something. Its just hard (soft in this case) cash.

I understood that we dont need bank's intervention like UPI but still I am not able to understand the need for it somehow.
 

aaa2zzz

Ungalil Oruvan
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Indha blog may give more information, terinjavanga thaaaa...UK la money exchange company vachu irukanga....all of your doubts are clarified there.

 
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