Lagatar24 Desk
New Delhi, Feb 1: Finance Minister Nirmala Sitharaman said on Tuesday while presenting the Union Budget 2022 that digital rupee will be issued using blockchain and other technologies by RBI starting 2022-23. This will provide a significant boost to the economy, according to the finance minister.
The Reserve Bank of India will back the digital rupee, which will be a digital representation of an Indian rupee (RBI).
Interestingly, India isn’t the only country experimenting with digital legal tender. Projects like the digital dollar, e-yuan, and digital euro are being tested by central banks all around the world.
The RBI will endorse the official digital currency, unlike Bitcoin, which is a cryptocurrency based on blockchain technology that allows users to remain anonymous. The digital rupee is equivalent to a physical rupee in all transactions. A digital rupee’s value will be the same as a physical rupee’s value.
Bitcoin and other cryptocurrencies are worthless because they have no intrinsic value. They are highly volatile, and unexpected and rapid drops in value as a result of external factors can pose major risks to investors.
