What is Digital Currency?

What is Digital Currency?
What is Digital Currency?

What is Digital Currency?

What is Digital Currency?
What is Digital Currency?

What is digital currency? In today’s digital age, everything is becoming digital. Digital currency is booming in the world. So far 9 countries have launched digital currency, and there are 16 such countries that are going to launch soon.

In such a situation, the announcement of digital currency by the Government of India is the beginning of a digital revolution in a way.

 What is digital currency? and What are the benefits of digital currency?

What is Digital Currency?
What is Digital Currency?

What is digital currency? In today’s digital age, everything is becoming digital. Digital currency is booming in the world. So far 9 countries have launched digital currency, and there are 16 such countries that are going to launch soon.

In such a situation, the announcement of digital currency by the Government of India is the beginning of a digital revolution in a way.

Digital currency will be launched legally in India using blockchain and other technologies. That is, the digital currency will also come in India whose name will be Digital Rupee. So let’s see what is digital currency?

The digital currency issued by the Reserve Bank will be an official legal tender. The government does not consider private cryptocurrency as a legal tender, if someone wants to keep it as an asset, they keep it.

The introduction of the Digital Rupee by the Reserve Bank of India will bring a new boom to the Indian economy. Digital Rupee will become a more effective and affordable currency management system. A special tax regime will be applicable for virtual digital assets.

What is Digital Currency?

Digital currency, this currency has been named Central Bank Digital Currency or CBDC in India. CBDC is a currency that will be completely digital and not like notes or coins. It can be called virtual currency or virtual money.

It will not be visible in your purse or hand, but the work will be the same as with money and coins. It will be issued by RBI. There are two types of digital currency.

It is the first retail digital currency issued to the general public and companies. On the other hand, wholesale digital currency is used by financial institutions.

What are the benefits of digital currency? What is Digital Currency?

What Is Cryptocurrency?
What is Digital Currency?

 

  1. You can convert it into sovereign currency.
  2. The Government of India is estimated to benefit from about 14 lakh crores from digital currency.
  3. Projected to generate 8 lakh jobs by 2030
  4. There will be a separate government digital currency from bitcoin and cryptocurrency.
  5. New digital currency in the country will give impetus to development.
  6. The digital economy will get a boost.
  7. The system of digital currency will move towards an affordable and efficient currency system.

What is Blockchain? What is Digital Currency?

Blockchain is a technology through which not only currency but anything can be stored by converting it into digital format. Blockchain technology was used in 1991 by Stuart Haber and W Scott Stornato.

This platform is like a laser. Experts believe that this is a kind of exchange process, which works on data blocks. In this, each block is connected to each other which cannot be hacked. The purpose of this technology is to keep documents digitally secure.

Benefits of Blockchain, What is Digital Currency?

  1. The data will be completely secure as the blockchain-based system is quite secure.
  2. Blockchain creates an immutable record of transactions with end-to-end encryption.
  3. Which helps to prevent fraud and unauthorized activity?
  4. Data on a blockchain is stored in a network of computers, making it nearly impossible to hack.
  5. This creates efficiency in processing transactions.
  6. This technology facilitates the collection and modification of data as well as the reporting and auditing processes.
  7. Blockchain helps businesses cut costs by eliminating middlemen – vendors and third-party providers.

What are the differences between cryptocurrency, and digital currency?

Difference Between Digital Currency Vs Cryptocurrency
What is Digital Currency?

The biggest difference between digital currency and cryptocurrency is that digital currency is recognized by the government of the country whose central bank issues it. So there is no risk involved. It can be used for purchases in the issuing country.

But cryptocurrency is a free digital asset. It is not legally recognized. All the responsibility lies with the investors. There are more risks in this. Because it is not run by any government or organization.

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