Unlike paper currencies, cryptocurrencies are decentralized i.e there is no central authority that issues, controls or overlooks them. “Block chain” is the underlying technology and the security of cryptocurrencies are backed by computer encryption algorithms like hashing and cryptography giving them the adjective “crypto”-currency. Start-ups are keen on utilizing this as an investing tool which […]
On 9 June, the Congress in El Salvador passed a bill to make Bitcoin a legally accepted currency in the country. It is the first ever country to include a cryptocurrency as its official currency. Individuals investing more than three Bitcoins in the country will also be given citizenship. The move will enable citizens to […]
Digital payments in India have grown at a phenomenal speed, some accounts suggest that there has been an overall 60% rise in the use of digital payments since demonetisation
A central bank digital currency would be an electronic form of central bank money that could be used by households and businesses to make payments.
Digital currency does not have to replace bank notes in fact it will complement bank notes. Rs 500 digital currency would have the same value as Rs 500 physical note.
Unlike a flat currency, digital currency is by its nature traceable. Digital currencies can show the movement of money in an economy. It can build a record of the trail of transactions as it changes hands.
Digital currency can be programmed to reach a certain section of society in a very specific time. This will be a great tool for the government to reach out to backward classes of the country with specific schemes.
However, there are many challenges ahead such as creating a safe and protected infrastructure. Just as any algorithm is susceptible to hacking, digital currencies too are prone to hacking
Digital currency is a good move by the government and the RBI as it is the next and natural progression to a digital and cashless economy as envisioned by PM Narendra Modi.