Digital Rupee: Conceptualization of Newer Form of Currency in India

Abstract

The technology has brought on an uninterrupted wave of transformation in the payments industry especially in emerging economies such as India. In fact, in lines with the other developed nations, the Reserve Bank of India has made an announcement to launch the Central Bank Digital Currency (CBDC) which will serve a legal tender at par with the physical currency. Digital Rupee, officially the CBDC of India, which is not intended to replace the physical cash for payment purposes, is merely a substitute for many unsafe digital assets viz. cryptocurrencies and a facilitator for digital payments transformation. This paper gives a glimpse of the current status of CBDC across different countries of the world. Along with it, the types and proposed structure of CBDC has been discussed in detail in this paper. Finally, some merits and demerits pertaining to the digital currency have been mentioned in the paper along with an appropriate future perspective on it.