Walking with cash in the pocket is not a trend in today's time though it is going to be reduced further. In fact, there is only one day left for the digital rupee to come for ordinary Indians. Let us tell you that the Reserve Bank of India (RBI) has announced the launch of the Retail Digital Rupee from December 1, which will be the first pilot project for retail digital currency. However, do you know how to use it? Also, what are its advantages and disadvantages? That's what we're going to tell you about today.
How to use E-Rupee? Information in this regard was shared earlier by RBI. It was told that CBDC (Digital Rupee) will be a medium of payment, which will be a legal tender for all citizens, businesses, government, and others. Yes, and its value will be equal to the legal tender note (existing currency) with safe stores. After the introduction of RBI's Digital Currency (E-Rupee) in the country, the need to keep cash with you will be reduced, or there will be no need to keep it.
Here are the major benefits of the E-Rupee:
- Will strengthen the digital economy.
- People will not need cash in their pockets.
- Just like a mobile wallet, it will make payments.
- Banks will be able to easily convert the digital rupees into money and cash.
- The cost of sending money abroad will be low.
- E-rupee will also work without an internet connection.
- The value of the E-Rupee will also be equal to the existing currency.
Now if we talk about the loss of the Reserve Bank of India's (RBI) digital currency E-Rupee, then one of its major disadvantages can be that it will almost end the privacy related to money transactions. Yes, although the identity is usually secret by transacting in cash, but the government will keep an eye on digital transactions. Yes and apart from this, there will be no interest in E-Rupee. According to RBI, if interest is paid on the digital rupee, it can bring instability in the currency market. Yes and the reason for this is that people will withdraw money from their savings accounts and start converting it into digital currency.