RBI announced the launch of “Digital Rupee” - giving a boost to the economy!

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Following the worldwide adoption of cryptocurrencies, India is gearing up to launch “Digital Rupee” or cryptocurrency. The Reserve Bank of India (RBI) is all set to launch a digital currency that will refer to the virtual form of Indian fiat currency. With Cryptocurrency trading reaching new heights, this initiative by RBI might boost the Indian economy by providing financial assistance to states.  



When will the digital currency be launched in India?

RBI is all geared up to launch CBDC (Central Bank Digital Currency) as India’s first digital currency in 2022-23. Giving a big boost to India’s economy, this will be India’s official digital rupee and could lead to a more efficient financial management system as well. However, after the proposal of the Union Budget by Nirmala Sitharaman, its regulation and launch time are yet to be announced by RBI.


Key highlights on the launch –

·         It will be named as “Digital Rupee” and will be established along with other cryptocurrencies.

·      This digital currency will be entirely based on blockchain technology same as other cryptocurrencies.

·         India will have its own central bank digital currency and will enter the list of certain countries.

·         The new digital rupee is expected to be tied up with the fiat currency of India.

The market experts say - Cryptocurrency development in Kolkata and across the country has become the new norm now. However, the best thing about the digital currency will be that it will be based on Blockchain technology and will make use of the same underlying technology used by other cryptocurrencies like Bitcoin, Ethereum, and others.


What is CBDC?

The new digital currency to be launched by RBI will be CBDC (Central Bank Digital Currency) and it will be the only virtual currency as announced in the Union Budget on 1st February 2022 by India’s Finance Minister Nirmala Sitharaman. However, CBDC is still going through various stages of development to be implemented in the financial ecosystem.

Key benefits of CBDCs –

·    CBDC adoption can be simple for people to use Polytrade along with supporting infrastructure.

·      CBDCs can be accessed by people just as UPI, making the digital cash experience seamless.

·     CBDCs can offer more liquidity scalability, acceptance, and ease of transactions to users.

·      CBDCs can be configured for specific requirements for any particular use.

CBDC will be the virtual form of fiat currency and will be the country’s official digital token that will store the electronic record. Once officially launched, the digital currency will be regulated by India’s monetary authority or the Central Bank. CBDC does hold the potential to promote financial involvement with the implementation of monetary policies. The Digital Rupee can boost the Indian economy as it can successfully draw the unbanked into the financial system.


According to a cryptocurrency Exchange development company, the motive behind the creation of a new and dedicated digital currency by RBI is to provide significant benefits like – reduced dependency on cash, higher transactional fees charged, and reduced settlement risks as well. CBDC might be the digital version of Indian fiat currency and can be exchanged via blockchain-based wallets.

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