Central Bank Digital Currency (CBDC): A Future of Digital Finance
September 27, 2023 ⚊ 1 Min read ⚊ Views 115 ⚊ BUSINESS
The Central Bank Digital Currency is a form of centralized digital currency that is issued by the country’s central bank. They are more likely similar to cryptocurrencies, besides the fact that their value is fixed by the central bank. They are considered equivalent to the country’s fiat currency.
In India, CBDC is also known as the ‘Digital Rupee’ or e₹“. It is presented by the RBI as a digital tender issued by the central bank. Now, digital rupees feature the same stability as physical cash. It builds trust, safety, and the settlement of transactions digitally.
CBDC is mainly working to ease businesses and consumers with privacy, accessibility, convenience, and fund security. With CBDCs, the cost of maintenance is also reduced significantly. It maintains smooth transferability in complex financial systems and also diminishes cross-border transaction costs.
