Central Bank Digital Currency (CBDC) is a kind of global digital currency controlled by central bank. CBDC is not cryptocurrency but it is decentralized. More than 105 countries are exploring CBDC before 2023. Today we will cover all the points related to CBDC and other digital currencies.
India has launched E-rupee CBDC on 2nd August 2021 but it is first circulated in indian market on 2nd Oct 2022
Advantages of CBDC
- Instant and direct money transfer from payer to the payee across the globe.
- Reduces the risk factor of payment hold and payment failed.
- Government can easily collect the tax and cross check whether users are paying tax or not.
- Save the cost of printing paper money for Government.
- Proof of transaction: Each transaction will be saved on the blockchain for payment verification process.