Reserve Bank of India (RBI) Executive Director Ajay Kumar Choudhary on Wednesday said that digital currency (e-Rupee) will further strengthen the digital economy, make payment systems efficient and reduce the cost of physical cash handling. Along with this, financial inclusion will also increase.
Choudhary said this while addressing a seminar on the topic ‘Central Bank Digital Currency – Story of India’. The event was organized ahead of a two-day meeting of the International Financial Framework Working Group of the G-20. The meeting will be held on January 30-31.
The RBI launched the Central Bank Digital Currency (CBDC) last year on a pilot basis in the wholesale and retail sectors. Chowdhary said that CBDC is just a digital form of physical currency and has all the characteristics of currency.
He said that it does not get interest like other currency. The e-rupee (digital currency) is expected to have other features of the currency like settlement of deals and security. Chaudhary also said that the digital currency is intended to complement the existing form of the rupee and not replace it.
The central bank official said that currently 115 countries representing 95 percent of the global GDP (Gross Domestic Product) are exploring the possibility of digital currency. About 60 countries have made considerable progress in this matter. Some of these are on pilot basis or in the phase of roll out.
Chaudhary said that 18 of the G-20 countries are exploring the possibility while seven countries, including India, have already started it on a pilot basis.
Credit: bharat.republicworld.com /