Table of contents | |
Introduction | |
Benefits of CBDC | |
SC Garg Committee Recommendations (2019) | |
Challenges in Rolling Out National Digital Currency | |
Conclusion |
Central Bank Digital Currency (CBDC), often referred to as a national digital currency, is the electronic form of a country's fiat currency, issued by the central bank and backed by the government's credit. In India, the Reserve Bank of India (RBI) is considering the implementation of CBDC and is planning pilot projects to assess its viability.
Reduced Currency Management Costs:
Real-time Payments:
The SC Garg Committee made several recommendations related to digital currency and cryptocurrencies in India:
Ban on Cryptocurrencies:
Penalties for Cryptocurrency Activities:
Open Mind on CBDC:
Cybersecurity Threat:
Digital Literacy:
Regulation Challenges:
Privacy Concerns:
The Reserve Bank of India is exploring the possibility of introducing a CBDC to modernize the payment system, reduce currency management costs, and potentially replace physical cash. However, this initiative is not without its challenges, including cybersecurity risks, the need for digital literacy, regulatory complexities, and privacy considerations. As India progresses toward CBDC implementation, a balance between innovation and security will be crucial to its success.
146 videos|358 docs|249 tests
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1. What is CBDC and what are its benefits? |
2. What were the recommendations of the SC Garg Committee in 2019 regarding CBDC? |
3. What challenges are involved in rolling out a national digital currency? |
4. How can CBDC promote financial inclusion? |
5. How can CBDC enhance monetary policy transmission? |
146 videos|358 docs|249 tests
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