RBI’s e- ₹ (digital currency ) showcased at FMCBG meeting as a curtain raiser
The First Finance Ministers & Central Bank Governors (FMCBG) meeting under the G20 Indian Presidency is scheduled in Bengaluru and will be chaired by Finance Minister Nirmala Sitaraman and co-chaired by RBI Governor Shaktikanta Das .
RBI on their official twitter account has shared the information that as the curtain raiser of this meeting held in Bangalore RBI’s e- ₹ as in the digital currency was showcased .
As a curtain raiser at the #FMCBG meetings under @G20India at #Bengaluru, @RBI's e-₹ (digital currency) showcased. Various delegates and Governor @DasShaktikanta visited stall.#RBI #RBIgovernor #G20Summit pic.twitter.com/TtFAhZ1j2J
— ReserveBankOfIndia (@RBI) February 23, 2023
In the image shared by them it can be seen that various delegates and Reserve Bank governor Shaktikanta Das have visited the Central Bank Digital Currency stall .
India’s Central Bank Digital Currency (CBDC) , Digital Rupee is issued by Reserve Bank of India as a digital token representing legal tender and is considered fiat money . This digital rupee is issued in the same denominations as the paper currency and coins currently in use .
Last year in a press release the Chief General Manager of RBI also stated that Reserve Bank will soon commence pilot launches of e- ₹ for specific use cases and as the extent and scope of such pilot launches expand , RBI will continue to communicate about specific features and benefit of e- ₹ , from time to time
RBI has also issued a concept note on CBDC which explained that this digital currency holds a lot of promises by way of ensuring transparency and low cost of operation among other benefits and potential to expand the existing payment systems to address the needs of a wider category of users .
The concept of this digital currency basically derived from crypto currencies , the only difference is that CBDC would be termed as a legal tender , easily transferable and legally recognized . The purpose of introduction of CBDC is risk mitigation in trade , business and commerce and also to control illegal , nefarious and money laundering activities carried out by certain cross sections of people .