What is Digital Currency


Digital Currency or Electronic Currency is any Currency, Money, Stored or Exchanged on Digital Computer Systems, especially over the Internet.

Types of Digital Currencies include Cryptocurrency, Virtual Currency and Central Bank Digital Currency. Digital Currency may be Recorded on a Distributed Database on the Internet, a Centralized Electronic Computer Database owned by a Company or Bank.

Digital Currency in India:-

The Reserve Bank of India (RBI) defines Central Bank Digital Currency (CBDC) as a legal tender issued by a central bank in a digital form. In simple words, it is a digital form of the fiat currency, i.e. Indian Rupee. It is thus, exchangeable one-to-one with the fiat currency.

India's Digital version of the rupee will be launched sometime in the 2022-2023 fiscal year, which starts on April 1. 

"Introduction of a central bank digital currency will give a boost, a big boost to the digital economy." Nirmala Sitharaman said as she delivered the country’s annual budget. “Digital currency will also lead to a more efficient and cheaper currency management system.




Digital Currency:-

  • Digital Currency is Fully Centralized 
  • It is surronded by legal Framework
  • Transaction directories is kept Secret
  • It is not Encrypted
  • Regulated by Central Banks
  • Robust laws for transactions in all States