Digital currency proposed by RBI will speed up transactions and reduce cash costs: Deloitte – Punekar News

New Delhi, March 10, 2022: Deloitte, a multinational professional services network, released a report on Wednesday. In this report, Deloitte stated that the central bank digital currency offered by the Reserve Bank of India (RBI) will play an important role in improving the speed of transactions and reducing the cost of cash.

The Reserve Bank of India plans to introduce a central bank-backed digital currency in the financial year 2022-23 using blockchain technology.

The report notes that digital currency as an innovation in financial services could play an important role in shaping future money transfers. On the other hand, most of the world’s central banks are currently in various stages of evaluation to introduce their national digital currencies.

Manish Shah, a member of the multinational professional services network Deloitte India, said “a digital currency that is CBDC (Central Bank Digital Currency) has its potential to transform the way transactions are conducted with more flexible, innovative and competitive payments for consumers. households, businesses, and economies. A system can form. This could further improve the economy.

Manish Shah further stated, “With the introduction of Digital Rupee, there will be a significant increase in transaction efficiency and associated costs will decrease.”

The report states that CBDCs can improve the efficiency and effectiveness of payment systems by ensuring that their users have access to secure digital currencies.

The Reserve Bank of India (RBI) will launch the CBDC in the next fiscal year. A CBDC is legal tender issued by a central bank in digital form. It is similar to fiat currency issued on paper and is interchangeable with any other fiat currency.

Finance Minister Nirmala Sitharaman made a big announcement regarding digital currency in the budget speech for the fiscal year 2022-23.

According to the finance minister, the digital rupee will be issued by the Reserve Bank of India (RBI). Digital Rupee will be a digital currency based on BlockChain technology, including Blockchain.

The concept of digital currency is not new. Many digital or virtual currencies, including bitcoin, are traded. But the digital currency will be the first virtual currency, which will be issued by the RBI and will be regulated by the Central Bank Digital Currency (CBDC).

Sylvia B. Polson