Klever
  • Home
  • Global
  • Exchange
  • Wallet
  • Education
  • NFTs
  • Announcements
  • Opinions
  • Marketcap
No Result
View All Result
  • Login
  • Register
Klever News
  • Home
  • Global
  • Exchange
  • Wallet
  • Education
  • NFTs
  • Announcements
  • Opinions
  • Marketcap
No Result
View All Result
Klever News
Home Global

India moving closer to Digital Rupee

by Jagdish Kumar
July 30, 2021
in Global
Reading Time: 4 mins read
2.9k
A A
0
Share on FacebookShare on Twitter

India’s central bank, the Reserve Bank of India is working on launching its own Central Bank Digital Currency (CBDC), the Digital Rupee in a phased manner. Let’s see its potential impact.

Understanding the importance of digital currencies, India’s central bank, the Reserve Bank of India is working on launching its own Central Bank Digital Currency (CBDC), the Digital Rupee in a phased manner.

Speaking at a webinar at the Vidhi Centre for Legal Policy, RBI deputy governor T Rabi Sankar said that the central bank is working on a pilot project that will be launched soon for the digital rupee.

The CBDC is being launched looking at the advent of cryptocurrencies, which is expected to damage the current monetary system and if not tackled properly will have grave consequences, Shankar emphasized.

You might also like

Time to start using K5: learn how to migrate to the new Klever wallet app version

Time to start using K5: learn how to migrate to the new Klever wallet app version

January 31, 2023
7.3k
Use cryptocurrency and blockchain for transparent and secure voting

Use cryptocurrency and blockchain for transparent and secure voting

January 30, 2023
7.3k

Changes in legal frameworks

In order to launch its own CBDC, the RBI will have to make several amendments to its RBI Act section 24, 25 and 26 as well as provisions of the Coinage Act of 2011, the Foreign Exchange Management Act and the Information and Technology Act, the deputy governor underlined.

The central bank has already started working on the framework so that CBDC can coexist alongside cash and current digital forms of payments.


India joins China, Russia & the UK mulling CBDC

After this announcement, India has officially joined the list of nations that are working to launch their own CBDC, which include China, Russia, the UK, Sweden and many others. 

Shankar also said that according to a Bank of International Settlements (BIS) study, 86% of central banks in the world are researching CBDC while 60% are experimenting with it. As much as 14% of central banks are in the pilot testing phase.


Digital Rupee as legal tender

Shankar further stated that the digital rupee will be defined as a legal tender issued by a central bank in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different. 

The digital rupee will be backed by sovereign reserves of the country and the aim is to have its value of these digital coins not be subjected to volatile market fluctuations. This is in contrast to decentralized crypto assets like Bitcoin or Ethereum, which are highly volatile in price and witness huge trading volume on a daily basis worldwide.


Alleged benefits of Digital Rupee

Explaining several benefits of a CBDC, Shankar said that CBDC will help reduce dependency on cash, while encouraging savings on the cost of printing currency as well as a more robust and secure settlement mechanism.

CBDC will also eliminate the time zone difference in foreign exchange transactions, which could foster a cheaper and smoother international settlement system. This he argued, would minimize the risks of cryptocurrencies on the real economy.

It is to be noted that RBI has been exploring the introduction of CBDC for the past few years. It is weighing the pros and cons of introduction of CBDCs and studying countries that are about to implement specific-purpose CBDCs in the wholesale and retail segments. 


Still studying CBDC globally

Financial experts believe that after studying it, RBI is working towards a phased implementation strategy and examining use cases which could be implemented with little or no disruption to India’s banking or monetary systems.

RBI is yet to decide, whether the digital rupee technology will be based on distributed ledger or centralized ledger, whether it will be in a form of token or account-based system, and whether it will be distributed by the central bank or by individual banks.  

CBDC is issued by a country’s central bank, which is backed by assets such as government securities and totally centralized. This is unlike cryptocurrencies which are issued by private entities and are primarily based on decentralized models, often community driven with no third party involvement. 


Klever is one such platform which offers true and secure ownership of cryptocurrency. It’s crypto wallet ecosystem is used by over 3 million users worldwide.

It is a simple, powerful, and secure self-custody crypto wallet, supporting the world’s major blockchains, empowering users globally an opportunity to take control of their money, funds and keys. Something no CBDC will ever be able to offer.

Written by Jagdish Kumar,

Klever News Editor

Previous Post

Klever & Reef Finance Partnership Enables Reef Mainnet Migration

Next Post

Crypto rising in East Africa

Jagdish Kumar

Jagdish Kumar

Reporting & writing on crypto & blockchain for the past few years. A content eagle, journalist & writer with a passion to explore new technologies that can change human lives. Joined Klever to make Crypto simple. Follow me on Twitter @TokenBharat or email me at jagdish@klever.io

Related Stories

Time to start using K5: learn how to migrate to the new Klever wallet app version

Time to start using K5: learn how to migrate to the new Klever wallet app version

by Maluh Bastos
January 31, 2023
0
7.3k

KleverChain’s launch in 2022 was one of the biggest accomplishments for the Klever Ecosystem.  Klever’s very own blockchain is bringing...

Use cryptocurrency and blockchain for transparent and secure voting

Use cryptocurrency and blockchain for transparent and secure voting

by Warren Manuel
January 30, 2023
0
7.3k

The integrity of democratic voting systems is crucial for the functioning of a healthy democracy. In recent years, there has...

Choosing Klever Wallet, K5 is a smart decision

Choosing Klever Wallet, K5 is a smart decision

by Isabela Bellumat
January 30, 2023
0
7.3k

As a decentralized crypto wallet, the Klever Wallet offers all the necessary tools for crypto enthusiasts, including storage of assets,...

Introducing K5, The Crypto Wallet Of The Future

Introducing K5, The Crypto Wallet Of The Future

by Klever
January 26, 2023
0
7.4k

KleverOS, the revolutionary Klever crypto wallet operating system that powers K5, ushers in a new era of crypto wallets. Today,...

Next Post

Crypto rising in East Africa

Klever Weekly Newsletter - July 30

Download Klever Wallet Download Klever Wallet Download Klever Wallet
ADVERTISEMENT

Recommended

Ethereum

Coin of the Week: Ethereum (ETH)

November 14, 2021
7.5k
Tron (TRX)

Coin of the Week: Tron (TRX)

May 19, 2022
7.5k

Popular Story

  • Stand a chance to win your share of 10,000 KLV

    Stand a chance to win your share of 10,000 KLV

    8334 shares
    Share 3334 Tweet 2084
  • Test drive Klever Wallet, K5 and Win 1000 KLV & 1 KFI

    7021 shares
    Share 2808 Tweet 1755
  • Bitcoin battles back from record losses to $21,000

    5914 shares
    Share 2366 Tweet 1479
  • Klever showcases its blockchain ecosystem on a Time Square billboard

    5358 shares
    Share 2143 Tweet 1340
  • K5 adds new blockchain and KleverSafe support in the latest Android version

    5070 shares
    Share 2028 Tweet 1268

Follow us on Twitter

Klever News

Join the Klever community
Growing together we are stronger.
Be sure to follow us on social media to stay up to date.

Categories

  • Announcements
  • Coin of the Week
  • Education
  • Exchange
  • Games
  • Global
  • Hardware Wallet
  • Market Updates
  • NFTs
  • Opinions
  • Sponsored
  • Wallet
Download Klever Wallet Download Klever Wallet Download Klever Wallet
ADVERTISEMENT

Recent News

Time to start using K5: learn how to migrate to the new Klever wallet app version

Time to start using K5: learn how to migrate to the new Klever wallet app version

January 31, 2023
Use cryptocurrency and blockchain for transparent and secure voting

Use cryptocurrency and blockchain for transparent and secure voting

January 30, 2023
  • Sponsored Content
  • Advertise
  • Contact Us
  • RSS Feed

© 2022 Klever News - Premium Crypto news & insights by Klever Finance.

  • Login
  • Sign Up
No Result
View All Result
  • Home
  • Global
  • Exchange
  • Wallet
  • Education
  • NFTs
  • Announcements
  • Opinions
  • Marketcap

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version