India has officially announced to issue its own digital currency. This time, the country’s central bank has said that the experimental (pilot project) ‘e-Rupee’ will be launched soon. The RBI has explained India’s digital currency or ‘e-rupee’ in a draft paper released on Friday (October 7). News Reuters.
RBI says that the currency can be used initially only in certain cases. Through this, they aim to make the digital transaction system more efficient and secure in the future. And also prevent financial fraud.
In the published draft letter, RBI said that the purpose of bringing the draft is to create awareness in this regard. They are not intended to replace the common currency in use in the current monetary system. Instead, efforts are underway to make digital money complementary to ordinary notes. So that an additional digital system can be introduced in financial transactions. Everyone can take advantage of it. It ensures that the system is safe, efficient, simple as well as cost effective. RBI also said that through this they aim to bring more people under the coverage of organized financial services and control fraud.
Earlier, the Finance Minister of India said that cryptocurrency will not be considered as digital currency in India. Only Central Bank Digital Currency (CBDC) will get that opportunity. It is the responsibility of the Reserve Bank to bring it in the future.
RBI Governor Shaktikanta Das, who has argued about crypto in the past, said that apart from being used in cases like terrorist activities, illegal financial transactions, drug trafficking, this currency can cause headaches for the country’s financial system. The Indian government has taxed crypto as an asset.
