What exactly is digital currency?
This must be a question you are searching for since the time Government of India announced the launch of digital currency.
The launching of the Central Bank Digital Currency, a digital form of legal tender, issued by Reserve Bank of India, marks the beginning of digital currency in India.
There are questions doing the round whether the digital currency can be exchanged for fiat currency i.e. the Indian rupee.
And the answer is yes. It can be one-for-one as it is a digital form of Fiat currency.
If you have doubts that will it be available to all, the answer is it will be initially available for the wholesale segment. Also it will be extended to the retail category in a month. RBI experts said that a pilot project for retail e-rupee will start within a month in select locations in closed user groups.
Using the digital rupee in the wholesale segment is expected to make the interbank market more efficient, says RBI.