Knowledge Corner-Digital payments -Arrival of CBDC!!!
Prof Vitthal Anant D.
Finance Coach for MSME Entrepreneurs & Individuals, Author of 3 books , Proud member Of Tajurba Business Network #FinanceFitnessExpert #MSME #Entrepreneur #Balance sheet #Profits#DigitalPayments#CyberCrimes#cards
CBDC(central bank digital currency) - legal tender issued by a central bank in digital form instead of physical format.
?It would appear as a liability (currency in circulation) on a central bank's balance sheet.
Crypto Currency is no longer anybody's liability. They have an abnormal level of volatility.
Payments using CBDCs will be final and reduce settlement risk in the financial system. Indian importers can pay their American exporter on a real-time basis in digital Dollars without an intermediary.
?CBDCs can replace extensive cash usage. This will reduce the cost of printing, transporting, storing, and distributing physical currency.
Currently, RBI is exploring risks associated with its impact on monetary policy, bank deposits & credit creation, cyber threat, degree of anonymity, wholesale and retail distribution mechanism, etc.It is expected that RBI may launch CBDC post June 22.