Sign In
Learn bits
Economy
Mahesh

22/07/22 16:32 PM IST

Phased implementation of digital currency for wholesale, retail segments in the works

In News
  • The Reserve Bank of India (RBI) is in the process of implementing the Central Bank Digital Currency (CBDC) in a phased manner for wholesale and retail segments.
Advantages 
  • For social benefits and other targeted payments in a country
  • CBDCs could be used for faster cross-border remittance payments.
  • Inclusive development: universal access attributes of a CBDC could also include an offline payment functionality, thus helping bridge the digital divide.
  • Instant lending to micro, small, and medium enterprises (MSMEs)in India can be possible with the help of CBDC.
About CBDC 
  • A Central Bank Digital Currency (CBDC), or national digital currency, is simply the digital form of a country’s fiat currency.
  • Instead of printing paper currency or minting coins, the central bank issues electronic tokens. This token value is backed by the full faith and credit of the government.
  • CBDC is not comparable with private virtual currencies or cryptocurrencies. It will be a sovereign-backed digital currency.
Challenges 
  • Potential cybersecurity threat.
  • Lack of digital literacy of the population.
  • Issue with regulation, tracking investment and purchase, taxing individuals, etc.
  • Threat to Privacy: The digital currency must collect certain basic information about an individual so that the person can prove that he’s the holder of that digital currency.
Source- The Hindu 

More Related Current Affairs View All

13 Aug

Working of satellite internet

'Satellite internet is revolutionizing how we connect, extending high-speed access to virtually every corner of the globe, regardless of location.' Imagine getting online from t

Read More

13 Aug

CBSE’s plan for open-book exams

'The Central Board of Secondary Education (CBSE) has officially approved the introduction of Open-Book Assessments (OBAs) for Class 9 students starting from the 2026-27 academic se

Read More

12 Aug

Stray dog problem

'The Supreme Court  directed the Delhi government, civic bodies, and authorities of Noida, Gurgaon, and Ghaziabad to round up and move stray dogs to shelters, underlining the

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps