The FinTech department of the Reserved Bank of India (RBI) recently released concept notes on the issuance of its Central bank digital currency (CBDC) in India.

This was revealed in a tweet from the RBI Twitter account on Saturday. The post simply explained the goals, options, pros and cons associated with issuing a CBDC in India, also known as a Digital Rupee.

The Central Bank Digital Currency (CBDC) it is a digital form of banknote issued by the central bank of a particular country. It is issued based on the specific requirements of a given country.

The launch of the digital rupee was first Announced in Parliament of Unions Budget February 2022 by Government of India for Fiscal Year 2022-2023 onwards. The budget also set out broad goals to be achieved by implementing a CBDC using blockchain and other technologies, such as a more efficient and cheaper currency management system.

India’s CBDC is expected to possess key features like; cross-platform support that enables the development of various client applications using CBDC for financial services, the ability to integrate with other IT platforms in the digital space, highly scalable to perform high volume of transactions, and highly efficient in monitoring and preventing fraud.

India’s involvement in Blockchain technology

The CBDC works like the fiat currency of any country. It can be used as a means of payment to carry out financial transactions.

India is keen to develop its CBDC for an enhanced digital experience. The growing adoption of non-government digital currencies has raised concerns with the RBI, which says such virtual assets could disrupt the financial ecosystem.

The central bank of India has set up a group to explore the possibilities of a digital currency backed by rupees. Since the advent of private digital tokens, the issuance of CBDCs has sought to reduce the cost of creating paper and metal money.

Maersk-IBM which is the largest shipping port operator in India Announced its involvement in using blockchain technology in its business processes, to show India’s broad embrace of the underlying technology.

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