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Is Indian government has allowing the Reserve Bank of India to issue its own cryptocurrency.

Is Indian government has allowing the Reserve Bank of India to issue its own cryptocurrency.



    Introduction

    Cryptocurrency is very popular in India, as it is a populous nation, so soon India will launch its own digital currency, know why government of India allow RBI CBDC.

    The Reserve Bank of India (RBI) is all set to issue its own cryptocurrency. This was announced by RBI Deputy Governor B P Kanungo on Wednesday. 

    He said that the bank is looking into introducing a central bank digital currency (CBDC).


    πŸ’What is a cryptocurrency

    Cryptocurrency is a type virtual currency that is being used by many different types of people. The most popular cryptocurrency is Bitcoin. However, there are also many other types of cryptocurrency like Litecoin and Ripple.

    The cryptocurrency market has grown at a surprising rate in the last few years. Cryptocurrency is currently one of the hottest investments to be had. This market has taken the world by storm and has a lot of people confused as to what it actually is. Cryptocurrency is set to make the world economy more flexible, more transparent and is more portable.


    πŸ’What is RBI's cryptocurrency?

    The Indian government has finally taken a step in the right direction by allowing the Reserve Bank of India to issue its own cryptocurrency. The CBDC will be called ‘Lakshmi’ and will be backed by the Indian rupee.

    The RBI has been looking into issuing a digital currency for quite some time now, but it was always held back by regulatory issues. Now, with this new announcement, it seems that they are finally able to move forward with their plans.

    The Indian government has been working on a project for the past few months to create its own digital currency. The project is now in its final stages and the cryptocurrency is expected to be launched soon.

    The Reserve Bank of India (RBI) has been working on a project called “India’s Central Bank Digital Currency” (CBDC). It is expected that this will be a cryptocurrency which will be backed by the Indian government and will be regulated by the RBI.

    This is not the first time that we have seen a country experiment with their own cryptocurrency. Venezuela launched their Petro coin in 2018 and Iran is also considering launching its own cryptocurrency as well.


    πŸ’What are the benefits of RBI's cryptocurrency?


    1. It will increase the speed and efficiency of transactions

    2. It will provide security against cyberattacks given that each transaction will be verified by multiple nodes. 

    3. It will reduce the cost of transactions by eliminating the need for third-party intermediaries. 

    4. it will promote financial inclusion by providing access to banking and other financial services to those who lack such access.

    5. This decision was taken in order to reduce the use of cash and to promote digital transactions.


    πŸ’What is a Central Bank Digital Currency?


    A central bank digital currency is a form of digital currency that is issued by a central bank and managed by the central bank. Central bank digital currencies are becoming more popular in countries that have a lot of digital transactions. 

    They can be used for digital payments in digital stores, online payments, and for digital payments made through mobile apps. Central bank digital currencies are also becoming popular in countries where the central bank does not issue physical paper bills and coins.



    πŸ’Conclusion


    The Indian government has finally taken the plunge and issued its own cryptocurrency. 

    The Reserve Bank of India has been researching digital currencies for some time and has finally decided to issue its own. 

    This is great news for the Indian economy and could pave the way for wider use of cryptocurrencies in the future.









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